Sunday, October 23, 2011

S&P important levels

Sorry for having disappeared for so long but life has been hectic as usual and add to that, a fair bit of travelling and what you get is a lot more hectic than usual and no time to trade. However, this being a holiday week in India combined with the time change from Nov 6 means I should have a lot more time to trade in the near future (fingers crossed!). And that should also mean a lot more regular blog posts. Well, like I said, I havent got time to trade in the last few weeks, and also havent been following the markets much, so its time to get some homework done before market open on Monday. Let's get started by looking at the important levels at the S&P for the short term.

First thing that stands out, at least to me, is the heavy resistance we can expect at 1260. The erstwhile support level from both March and June has now become an important resistance level and should be a tough nut to crack.

It turns out that 1260 is also an important Fibonnaci level, adding further to its importance. Its amazing how these things play out!

Looking for support levels, Friday was a pretty important day for the markets with the index finally closing above 1230, the first time it has done so since early August. One could expect some support at this level.

Following is a 15 minute chart of the S&P that shows that 1220 is an important support level. So, 1220-1230 would be your support zone.

So, those are the levels to watch out for on S&P for the coming week. Above all, watch out for the news with it being an important week for the Euro. But then, which week isn't?

Take care and good luck!

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