S&P 500 Range Narrowing: Levels to Watch

By
Andrew Nyquist
-

By Andrew Nyquist
Futures pushed higher this morning indicating a morning hop.  But indecision is still high and the market is nearing an inflection point.  The past few days have found the market playing ping pong (down, up, down), and this has only served to further entrench The S&P 500 within its narrowing range (between the 50 and 200 day moving averages).

As I previously scribed last week, 1257 is an important resistance area on the S&P 500, and one to eye for a breakout confirmation.  1257 is near the 200 day moving average, it represents break-even for the year, and more importantly, it is the .618 [61.8%] fibonacci retracement of the annual high and low.  On the support side, 1223 is equally important.  It is near the 50 day moving average and the 50% fibonacci retracement of the annual high and low.
Note that if a “Santa” rally is going to occur, it should commence within the next day or two.  Keep an eye on the support and resistance levels.  Annotated chart with technical analysis overlay below.

Happy investing.

———————————————————

Your comments and emails are welcome.  Readers can contact me directly at andrew@seeitmarket.com or follow me on Twitter on @andrewnyquist.  For current news and updates, be sure to “Like” See It Market on Facebook.  Thank you.

Sign up for our FREE newsletter
and receive our best trading ideas and research



Position in S&P 500 related index fund (SPY) at time of publication.

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.

NOT INVESTMENT ADVICE

RELATED ARTICLESMORE FROM AUTHOR