S&P 500 April 23, 2011

Last post, I showed some support/resistance curves and said:


"Support remains at 1280-1300


There is resistance around 1330"


The next day, Monday 11, 2011, there was some announcement by S&P's rating agency and market gapped down at the open.


Now, I am not gonna get into how useful or useless such belated warning or announcement by an always lagging institution might be -- an institution who completely missed or mis-judged credit worthiness of many banks leading to 2007 top -- no, I won't get into debates like that because, plainly, and simply, I don't care :-)


At Market Time Premium, we deal with price and risk levels.


As it happened, the drop on Monday, whatever the cause, was just a test of the support area I had identified. The test was good and led to a bounce that went through the resistance I had identified


This is an updated version of the chart I posted last week





Support is at 1320 and 1309

After that, I have the same 1280-1300 area of last week as a very significant technical support area


I think that is a much simpler way of playing the market than trying to out-guess the sort of noise that may or may not come out of this rating agency or that

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