On Tuesday the S&P 500 ended at 1207. 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. Yesterday the index reached a 52 high of 2518 before settling to 2500. Its time to look forward beyond recovery and into growth after these indexes finally broke through their 52 week highs.
Fed Chairman Ben Bernanke favored breaking up firms before they become too big to fail in an effort to overhaul financial rules and limiting executive pay. Overhauling the financial sector will bring added security to avoid future credit crises as the one in 2008.
On Monday the financial sector was helped with strong earnings from Citigroup after the plunge from SEC investigations against Goldman Sachs. Citigroup report the best results in 3 years after the fallout from the credit crisis. March leading indicators was up 1.4% showing slow recovery due to the higher than expect jobless claims. The rally continued into Tuesday’s trading day.
Wednesday’s primary pivot point for the S&P 500 is 1204.93 and the 52 week high is 1214. Watch the market to stay above today’s primary pivot level because there is support below that level. This should provide a foundation to push the S&P 500 higher to fresh new highs.
Summary of Pivot Levels:
1214: S&P 500 52 week high
1205:55 Fibonacci moving average on 5 minute chart
1204: April 21st primary pivot point
1202: 144 and 200 Fibonacci moving average on 5 minute chart
1199: 8 Fibonacci moving average on daily chart
1197: April 19th previous high
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