TraderMongers Day Trading Economic Analysis: August 16, 2010 Empire State Manufacturing Survey
Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!
S&P 500
After the Federal Reserve stated it will be purchasing Treasurys to keep the economy recovery on track, worried investors sold off accordingly to the FOMC announcement. The added news of China not helping the global economy during the recovery multipled the existing fear. The Dow Industrials moved above their June high however the S&P 500 did not confirm the move by moving higher. These are indications of negative trends and bearish markets ahead until the November mid-term elections are over.
As the August volume gets thinner analysts need to look at the charts with a long-term view of the markets. Two weeks ago the markets were trying to break through the January 2010 resistance level beginning around 1125 on the S&P 500. The market made several attempts however fell short and it is currently trading below the 1100 area.
On the daily chart of the S&P 500, the market is currently trading below the 144 and 200 day moving averages after its failed attempt trying to break through the January 2010 resistance level. We expected August to trade below this level due to lack of volume and uncertainty within the markets including the China slowdown, upcoming elections, and weak labor market.
The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks. Currently the VIX trading at the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnifies moves on the VIX so markets could be less liquid markets than fear-driven.
The Chicago Board Options Exchange (CBOE) Market Volatility Index measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar when the index is trading above 30.
Summary of Major S&P Pivot Levels
1219: S&P 500 52 Week High
Technical Levels Natural Support and Resistance
1125: January 2010 Resistance Level
1100: Natural Support Level
Technical Levels 15 Minute Chart
1096: 144 Day Fibonacci Moving Average on 5 Minute Chart
1099: 200 Day Moving Average on 5 Minute Chart
Technical Levels Daily Minute Chart
1102: 144 Day Fibonacci Moving Average on Daily Chart
1091: 200 Day Moving Average on Daily Chart
Daily Economic Calendar
Empire State Manufacturing / 8.30 EST
Housing Market Index / 10.00 EST
* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.
- Technical and pivot levels for the S&P and other indices
- Alerts for 52 highs and lows as well as their respective sister stocks to watch
- Highlights on the economic calendar and trading strategies off those numbers
- Analysis of various sectors of the markets as well as sister stocks to watch
- Much more
Disclaimer
The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual's personal needs and circumstances.
All Right Reserved TraderMongers.com © 2010
Questions and Answers
Article Tags:
crude oil
,day trading
,dollar
,euro
,forex analysis
,gold
,market analysis
,sp 500
,forex trading
,sp pivot points
,jobless claims
,economic numbers
Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com! Visit our blog at Tradermonger.blogspot.com for charts
Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!
Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!
We mentioned yesterday that there will be resistance around Tuesday's previous high of 1192. The S&P 500 only reached a high of 1190 before being consumed with the consumer credit report declining $11.5 billion in February. The S&P 500 settled at 1182 level after it fell to a low of 1177 breaking last Thursday's previous high of 1181.
On Friday Goldman Sachs was charged by the SEC with civil fraud regarding dealings of the subprime related products. Expect European and Asia markets to be lower on Monday after the aftermath of selling on the US exchanges. The S&P 500 fell to 1192 ending the day near last Wednesday's previous low.
Monday's trading the S&P 500 ended at 1198 below the 144 and 200 Fibonacci moving averages on the 5 minute chart. Recently the volatility index spiked from a 52 week low of 15.23 to 17.34. There seems to be support between 16.50 and 15.50. Breaking these levels will push the S&P 500 index higher.
The growing Indian market is attracting investors on the ground of the promising and assured return. The online trading is very popular these days and most of the people prefer it for quick money.
Learn the fundamentals of committing cash in Stocks, Ties, Common resources, Merchandise, Actual estate We create Getting Inventory Industry straightforward for you with a comprehensive guide to committing. Any effective stock market buyer must be acquainted with the fundamentals of stock market committing.
Online share trading is one of the most popular financial markets in the world today; however, any people are hesitant in starting due to not knowing a lot about it. This article will help explain what online share trading is all about, how you can get involved for a low initial investment and what to consider before, during and after trading.
The stock market is mostly used to create money. . I am sharing my investment strategy as a retail investor. Most financial experts recommend investors to initially contact a financial advisor. Able to provide advice, it can ensure that the money an investor get a good return or not.
This article has discussed about the importance of Stop orders. Stop orders act like the life jackets
During the Dark Age of Comics Valiant Communications was created by former editor-in-chief of Marvel Comics Jim Shooter in 1989. Now Valiant Entertainment returns to explore the Digital Age of Comics with the CEO who helped Marvel from bankruptcy Peter Cuneo.
Sri Lanka has become one of the fastest growing economies of the world following their 26-year civil war ending in May 2009.
Following the poor performance with the 2011 Green Lantern film and comic sales, DC Comics rebooted its comic franchise with the New 52. After last year's Flashpoint event, three universes consisting of the main DC Universe, Jim Lee's Wildstorm, and Vertigo characters share a common world with younger characters.
Following Marvel Comics 2011 event Fear Itself, the stage is being prepared for the Avengers Vs. X-Men starting with Avengers: X-Sanction.
An evidence-based church is the practice of using current human resource principles and industrial psychology to enhance retention and decrease turnover. Many modern contemporary churches have an orientation program for church membership. The common thread between these programs includes an opportunity to communicate the purpose and expectations of the church. The culture is introduced to allow new and prospective church members to assimilate towards a unique church experience.
