The daily chart (source: TradeMonster platform) of SPX (S&P 500 Index) shows that the market correction over the last couple of weeks found some near-term support (in the 1175 area). However there is heavy resistance in the 1220-1230 region and we should be cautious as we approach that regime. I expect the market to test that level in the near term. However, the trading will most likely be choppy.
I would also like to point out that the VIX at this level (18.04) and is close to support. So you may want to buy some protection now when it is cheap if you have a lot of long exposure.
sounds good to me
As I had pointed out last night the market seems to have a decent near-term support. This was further confirmed by the late day rally today, mostly led by the tech sector, erasing most of the earlier losses. HP reported strong earnings after the market close and have also raised 2011 outlook. This should help the market tomorrow morning to some extent. The major concern at this stage is the financial sector. The financials have consistently been the drag in the market and we can not have a healthy rally if the financials do not start performing to the upside.
what’s your disclaimer?
Hello chinhsi, Please refer to the “Disclaimer” tab in the header section. Thanks, Devdeep.