By InTheMoneyStocks.com on June 6th, 2010 5:30pm Eastern Time
Last week we mentioned to expect further volatility and that was certainly the case. When the week came to a close the S&P 500 Index lost 24.53 points closing at 1064.88. This was a new weekly closing low for the S&P 500 Index in 2010 as the February 2010 weekly closing low was 1066.19. While this is still a support area on the weekly chart the current market trend is down and all rallies have been sold. Many traders and investors will often buy the first tag of an important support area, however, when these levels retest so quickly the odds of the level holding up diminish. The next important weekly support level for the S&P 500 Index will be the 1050.00 and 1000.00 areas. This coming trading week should again remain very volatile as the market uncertainty should continue. As subscribers have know since late last year we said 2010 is a traders year and will not be productive for the buy and hold investor. While the ninth year of a decade is historically bullish, the same cannot be said for years ending in zero. Note the SPDR S&P 500 ETF (NYSE:SPY) for an alternative means of trading the S&P moves.
Comments