The S&P 500 Index [SPDR S&P 500 ETF (NYSE:SPY)] gained nearly 25.00 points this past week in a very volatile session. Last Monday on May 5th, 2010 the European Central Bank (ECB) and the International Monetary Fund (IMF) announced a $1 trillion European bank bailout. This helped to give the markets a huge rally early in the week. However, by late last week the major market indexes gave back most of those gains. Next week is options expiration which is always a volatile and choppy week. While the short term trend is down the S&P 500 Index remains above the weekly 50 moving average. Therefore, it is possible to see sideways action next week. There has been a lot of liquidity thrown at this market again which is keeping the S&P 500 Index above the $1100.00 level at this time. The weekly support levels for the broad based index is $1100.00 and $1070.00.
Comments