S&P 500 Pivots
The S&P 500 ended 1 index point lower to 1206. Guidance cuts from the health-care sector were cancelled by better-than-expected earnings from Apple and Boeing. Earning season will continue to drive the market for the foreseeable future.
On the technical level all main indexes including the Dow Jones, Nasdaq, and S&P 500 are all above their previous resistance levels indicating possible economic recovery and sustained growth. Previously the Dow broke 11,000 and investors were waiting for the S&P 500 to break 1200. Once that happened then the next index was the Nasdaq which reached 2500.
Thursday’s primary pivot point for the S&P 500 is 1205.26 and the 52 week high is 1214. The market stayed above Wednesday’s primary pivot level of 1204.93 driving the foundation of building support within the S&P 500 before going higher. The market made attempts to push above 1208 area however failed.
Yesterday’s previous low was 1199 which also crosses over the 8 Fibonacci moving average on the daily chart. Currently the new 8 Fibonacci moving average is 1200. Unless earnings and other economic numbers released today are horrible (See other report: Day Trading Economic News Analysis: Events April 22, 2010) expect the S&P to stay above the 1200. If the market breaks 1200 expect traders to take some very good short positions.
Summary of Pivot Levels:
1214: S&P 500 52 Week High
1205: Today’s Primary Pivot Level
1203 – 1205: Convergence 8, 21, 55, 144 Fibonacci
moving averages on 5 minute chart
1201: 200 Moving average on 5 minute chart
1200: 8 Fibonacci moving average on daily chart
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