Options Trading News

October 26, 2011  Wed 12:49 AM CT


The indexes suffered a number of setbacks yesterday as concerns over the outcome of the European debt-crisis summit tomorrow came back late in the morning.

The market felt additional pressure when notable earnings disappointments, from such names as 3M and Netflix, hit the tape. That trend continued after the bell yesterday as Amazon.com missed forecasts on the top and bottom lines. AMZN was down more than 14 percent in the after-market, a plunge that will hurt the Nasdaq 100 and the S&P 500's consumer discretionary sector.

In terms of levels, we saw the indexes erase most if not all of Monday's gains, so we are back to those levels today for the NDX and the SPX. The one index that saw no change to levels was the Russell 2000.

Nasdaq 100 (NDX)

Support is at 2295.10, its 200-day moving average. Support below the 200-day is at 2256.70. First resistance is at 2338.46, its 10-day moving average. On a break above the 10-day, next resistance would be at 2337.70, the pivot high from September, then at 2373.82.

S&P 500 (SPX)

Support is at 1220.85, its 10-day moving average. On a break below the 10-day, next support would be at 1180.61, its 50-day moving average. Resistance is at 1233.10 and then at 1249.05, which was the previous trading range low from the start of the year through July. Above 1249.05 next resistance is at 1267.53.

Russell 2000 (RUT)

Support is at 706.25, its 10-day moving average. On a break below the 10-day moving average, support is at 685.81, its 50-day moving average. Resistance is at 718.63, the September pivot high. On a break above that pivot, next resistance would be at 737.64, the pivot range high for the last three months.

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