Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 16, 2012  Mon 8:37 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES

The S&P 500 has rallied nicely this year but is now back to resistance levels, so it's time to be a little more cautious on the long side.

The index is stalling right around the same 1290-1296 area that was support back in mid-July before the market crashed. That also marked the top after we bounced in October.

Another consideration is that the 100-day moving average (gray line on the chart below) is still below the 200-day moving average (green line). We might need to consolidate a little while longer for those moving averages to line up correctly. (The 100-day should be above the 200-day for us to rally. For a similar set up, look at 1994.)

All those things, against the backdrop of Europe, suggests that time is still needed. There are lots of reasons to be either bullish or bearish, and I won't try to say which way the market is going next. For now, it's just worth appreciating where we stand.

SPX

(A version of this post appeared on InsideOptions Pro on Friday. Chart courtesy of tradeMONSTER.)

Share this article with your friends


Related Stories

SPX

Cramer: Answering all the critics

October 24, 2014

Wednesday's session was infuriating. The moment this market went down big, it was a terrific opportunity to buy. But so many people offered excuses not to.

SPX

Futures pause after sharp rebound

October 24, 2014

U.S. equity futures are pointing to a lower open this morning after stocks rallied sharply yesterday, recovering losses from the previous session.

SPX

Earnings, housing data top docket

October 24, 2014

The earnings parade will continue to dominate the agenda today. New home sales at 10 a.m. ET are the only economic data scheduled for release.

SPX

Strong earnings push futures higher

October 23, 2014

Caterpillar is up more than 4 percent after blowing out estimates. General Motors, 3M, Southwest Airlines, Comcast, and Eli Lilly are higher as well.

SPX

Jobless claims, earnings top docket

October 23, 2014

Jobless claims will be reported at 8:30 a.m. ET. The pre-market earnings lineup includes General Motors, 3M, Eli Lilly, Union Pacific, Celgene, Comcast, American Airlines, and Under Armour.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER