By Gareth Soloway on August 18th, 2010 11:51am Eastern Time
The markets opened flat on the day. Lack of economic news kept the volume low. Initially, the markets, seen in the chart below as the SPDR S&P 500 ETF (NYSE:SPY), sold a little in a continuation move from late yesterday. Technically, the master support was going to be gap window and the 200 moving average as they converged. This was at a price of $108.95. In addition, this is also a key even number play, a major discovery by InTheMoneyStocks. At this level, it was expected and called that the markets would bounce up. Sure enough, the markets did bounce. They bounced right back up to the opening price, flat line on the markets, then sold again, then bounced again. We find the markets at the high end of the range currently, trying to breakout to the upside. What favors a breakout? The light volume is the key here. A large breakout is not expected, but a small one is highly likely. If this key $109.60 level is taken out, look for yesterdays high at $110.35 as a major poing of resistance. On the downside, that gap window is still the major level. If that breaks, minor support is at $108.60 and then major support at gap fill at $108.35. To get more insight, analysis, guidance and swing trades, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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