Day Trading Economic News Analysis: S&P 500 June 1, 2010

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

After Memorial Day weekend beginning the half way point of the year and start of the slow summer season vacations all the market indexes are trading near levels seen on January 2010. Even the summer movies have a hard time getting off of ground such as the recent Memorial Day weekend movies: Prince of Persia and Sex in the City 2.

2010 has not been a great year as revelations are revealed concerning off shore drilling, European countries debt exceeding their GDPs, and the ‘flash crash’ fallout on May 6^th. These uncertainties are adding volatility to the markets and traders and investors are seeking safety within Treasuries, gold, and the dollar. The market will continue to go lower as the volume of trades continues lower as we enter the slow summer months and low risk assets become more appealing.

On Friday the S&P 500 index ended the last trading day in May at 1089. We have mentioned that the 1090 resistance level is a major level to break. It was broken on Thursday due to a short covering rally and fell back.

The S&P 500 index is currently trading below the January 2010 resistance level and ended the day on Friday on the 200 day moving average on the daily chart of 1089.

The Chicago Board Options Exchange (CBOE) Market Volatility index (VIX) measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar.

As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The index is also slightly above 30 so unless it is below this level do not expect a confirmed rally or upside within the equities market.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1115: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Strong Resistance Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1076: 200 Day Fibonacci Moving Average on 5 Minute Chart

1075: 144 Day Fibonacci Moving Average on 5 Minute Chart

1175: Natural Support Level

Tuesday Economic Calendar

ISM Mfg Index / 9.00 EST

Construction Spending / 10.00 EST

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

Day Trading Economic News Analysis: S&P 500 May 27, 2010

On Wednesday the S&P 500 index hit an intraday high of 1091 just 1 point above Monday and Tuesday’s previous high of 1090. Multiple attempts to break the 1090 level would be needed to have a confirmation of a rally. Next Monday is Memorial Day weekend so expect a short covering rally to take place on Thursday or Friday of this week.

The S&P 500 index finished at 1068 just below the natural resistance level of 1075. The 1075 level is the convergence of the major of the moving averages (21, 55, 144, and 200) so expect major resistance around this area before a confirmation breakout. Investors and traders maybe covering their shorts the ‘Volcker Rule’ is slowly becoming a reality which limits high-risk trading near July 4^th.

Looking at the daily chart of the S&P 500, the index is currently trading below the January 2010 resistance level as well as the 144 and 200 day moving averages. Yesterday we mentioned that the S&P 500 will be range bound between 1175 and 1110 as we head towards the slow summer months. The index traded below this range however rallied and finished below the natural resistance level of 1175.

The Chicago Board Options Exchange (CBOE) Market Volatility index (VIX) measures options activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders seek protection for their assets.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar. As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The index is also slightly above 30 so unless it is below this level do not expect a confirmed rally or upside within the equities market.

As we have stated yesterday as long as we are below the 1075 level on the S&P 500 and the market volatility is above 30 expect choppy trading with no confirmed rallies. We still expect the market to be range bound between 1075 and 1100.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1115: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Strong Resistance Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1076: 200 Day Fibonacci Moving Average on 5 Minute Chart

1075: 144 Day Fibonacci Moving Average on 5 Minute Chart

1175: Natural Support Level

Wednesday Economic Calendar

GDP / 8.30 EST

Jobless Claims / 8.30 EST

Natural Gas Report / 10.30 EST

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

Day Trading Economic News Analysis: S&P 500 May 26, 2010

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The European markets are plaguing the markets as their debts will hurt the global financial sectors. On the US front the Federal Reserve banks want to raise the discount rate, which is a sign of confidence of recovery within the economy. However jobless claims are still high so any chance of currently raising interest rates are nil.

The S&P 500 index finished as it did yesterday around the natural support level of 1175. Investors and traders maybe covering their shorts the ‘Volcker Rule’ is slowly becoming a reality which limits high-risk trading near July 4^th.

The index met resistance due to Monday’s previous high as well as the convergence of the 144 and 200 day moving averages on the 5 minute chart. The S&P 500 index should be trading below the 1190 Monday’s resistance. An upward breakout could possible push the towards the 1110 area.

Looking at the daily chart of the S&P 500, the index is currently trading below the January 2010 resistance level as well as the 144 and 200 day moving averages. Yesterday we mentioned that the S&P 500 will be range bound between 1175 and 1110 as we head towards the slow summer months. The index traded below this range however rallied and finished near the natural resistance level of 1175.

The Chicago Board Options Exchange (CBOE) Market Volatility index (VIX) measures options activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders seek protection for their assets.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar. As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The index is also slightly above 30 so unless it is below this level do not expect a confirmed rally or upside within the equities market.

As long as we are below the 1075 level on the S&P 500 and the market volatility is above 30 expect choppy trading with no confirmed rallies. We still expect the market to be range bound between 1075 and 1100.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1116: 144 Day Fibonacci Moving Average on Daily Chart

1110: Natural Resistance Level

1190: Monday’s Previous High

1086: 144 Day Fibonacci Moving Average on 5 Minute Chart

1085: 200 Day Fibonacci Moving Average on Daily Chart

1175: Natural Support Level

1069: 200 Day Fibonacci Moving Average on 5 Minute Chart

Wednesday Economic Calendar

Mortgage Applications / 7.00 EST

Durable Goods Orders / 8.30 EST

New Home Sales / 10.00 EST

Petroleum Report / 10.30 est

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

Day Trading Economic News Analysis: S&P 500 May 25, 2010

Understanding the direction of the marke as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Fear overseas is playing apart during today’s trading. Greece debt and the bailout offered are presenting questionable actions on whether the play will help the euro. China’s real estate bubble and the falling price of copper are indicating fears of deflation rising throughout the global economy.

The S&P 500 index finished just below the natural support level of 1175. The index met resistance due to Monday’s previous high as well as the convergence of the 144 and 200 day moving averages on the 5 minute chart. The S&P 500 index should be trading below the 1190 Monday’s resistance. An upward breakout could possible push the towards the 1110 area.

Looking at the daily chart of the S&P 500 index, its still trading below January 2010 resistance level as well as the 144 day moving average of 1117. Expect the market to be range bound between 1175 and 1110 as we head towards the slow summer months.

The Chicago Board Options Exchange (CBOE) Market Volatility index (VIX) measures options activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders seek protection for their assets.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. Traders and investors are retreating from the markets and finding safety and protection within the dollar. As long as we stay above this level expect pessimism as we approach the slow summer months.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1117: 144 Day Fibonacci Moving Average on Daily Chart

1110: Natural Resistance Level

1190: Monday’s Previous High

1086: 144 Day Fibonacci Moving Average on 5 Minute Chart

1084: 200 Day Fibonacci Moving Average on 5 Minute Chart

1085: 200 Day Fibonacci Moving Average on Daily Chart

1175: Natural Support Level

Tuesday Economic Calendar

Consumer Confidence / 10.00 EST

Ben Bernanke Speaks / 20.30 EST

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

Day Trading Economic News Analysis: S&P 500 May 24, 2010

Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!

S&P 500 Pivots

Many traders and investors covered their short positions on Friday before the weekend rallying the US equities markets. The switch from cash to equities also helped the euro strengthen. However disaster still looms over the euro regardless of Germany offering a bailout package up to $750 billion. The 16 member European Union still have high debt to GDP ratios that need to be addressed before the euro has some stability.

China is showing some slowing as rising inflation is causing a real estate bubble. A trade deficit occurred in March as imports are rising compared to exports indicating a slowdown in industrial manufacturing. The slowdown in the global economies as well as falling prices in metals is showing deflation around the world.

The SEC introduced a circuit break rule to prevent the ‘flash crash’ of May 6^th to the S&P 500 equities. If the stock market drops down 10%, trading halts for 5 minutes before resumes. This rule is in effect until December 11^th 2010

The S&P 500 index shows its trading below the January 2010 resistance level as well as the 200 day moving average (1091) on the 5 minute chart. The index has to convincingly break the natural resistance level of 1100 to fully reverse the correction.

The 1085 is a important level on the S&P 500 index as it is currently near the 144 Fibonacci moving average on the 5 minute chart as well as the 200 day moving average on the daily chart. Currently the trend is still heading downwards.

The market volatility index (VIX) measures option activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders and investors are seeking protection for their assets instead of risks.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. As long as we stay above this level expect pessimism as we approach the slow summer months.

Summary of Pivot and Technical Levels
1219: S&P 500 52 Week High
1100: Natural Resistance Level
1091: 200 day Fibonacci moving average on 5 minute chart
1085: 144 day Fibonacci moving average on 5 minute chart
1127 – 1141: Major resistance level for the S&P for January 2010
1117: 144 day Fibonacci moving average on daily chart
1085: 200 day Fibonacci moving average on daily chart

Monday Economic Calendar
Existing Home Sales / 10.00 EST

Disclaimer
The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual's personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010

Day Trading Economic News Analysis: S&P 500 May 21, 2010

Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!

S&P 500 Pivots

On Thursday the US equity indexes continued it’s May sell off philosophy. All the major indexes were down for the day amplified by the European debt crisis, the oil-spill in the Gulf, and the recent 1000 point crash in the Dow Industrials. After a three day sell off there could be a possible rally due to options expirations tomorrow as well as traders and investors getting out of their short positions prior to the weekend.

The S&P 500 index on the 5 minute chart fell for the third straight session today. Commodities are weaker due to the events listed above as well as a possible slowdown in China will drain global growth. Today jobless claims were released and a jump from 25k to 471k didn’t encourage the US equity markets.

We have told our readers before the S&P 500 is currently undergoing a correction. On the daily chart of the S&P 500 we are currently trading below the January 2010 support level of 1121.

Currently the index is below the 200 day moving average on the daily chart. Expect the S&P 500 to find resistance breaking between 1117 and 1120 area as it is below the January 2010 pivot level of 1121. We had a three day sell off in equities as we approach Friday’s trading day. Expect a mini rally due to options expiration tomorrow.

The market volatility index (VIX) measures option activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders and investors are seeking protection for their assets instead of risks.

A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the dollar. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. As long as we stay above this level expect pessimism as we approach the slow summer months.

Summary of Pivot and Technical Levels:

1219: S&P 500 52 Week High

1101: 200 day Fibonacci moving average on 5 minute chart

1100: Natural Resistance Level

1096: 144 day Fibonacci moving average on 5 minute chart

1127 – 1141: Major resistance level for the S&P for January 2010

1117: 144 day Fibonacci moving average on daily chart

1085: 200 day Fibonacci moving average on daily chart

Friday Economic Calendar:

No Economic Numbers Scheduled

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual's personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010

Day Trading Economic News Analysis: S&P 500 May 20, 2010

Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!

S&P 500 Pivots

On Wednesday the US equity indexes strongly supports the ‘Sell in May’ philosophy. All the major indexes were down for the day amplified by the European debt crisis, the oil-spill in the Gulf, and the recent 1000 point crash in the Dow Industrials. Commodities are taking a hit as copper is going lower and gold losing its shine, which was down $21.00 during the last trading session. This growing slide in commodities reflects deflation risks, which means borrowing and spending are discouraged. Yesterday the FOMC minutes revealed a hold approach for assets until economic recovery grows.

Gold hit a record price in dollars of $1,249 last week. Gold imports have been increasing in India prior to April and May as they prepare for a million wedding ceremonies to be held during that time period. Crude oil is finding similar wear as it is trading around $71 a barrel with the stronger dollar reaching near six-month lows, ahead of the summer driving season. According to the editor of the Gartman letter, Dennis Gartman stated that crude oil is falling 25% faster than gold.

The S&P 500 index on the 5 minute chart shows a downward trend on Wednesday trading below Tuesday’s low of 1117. The S&P 500 is also trading below the 200 and 144 day Fibonacci moving averages of 1120 and 1118, respectively.

We have told our readers before the S&P 500 is currently undergoing a correction. The seasonal trading strategy of ‘Sell in May and go away’ is currently strong. On the daily chart of the S&P 500 we are currently trading below the January 2010 support level of 1121. Expect the S&P 500 to find resistance breaking between 1117 and 1120 area as it is below the January 2010 pivot level of 1121. Use the summary of technical levels below as guidelines for trading.

The market volatility index (VIX) measures option activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off as traders and investors are seeking protection for their assets instead of risks. Traders and investors are retreating from the markets and finding safety and protection within the dollar. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. As long as we stay above this level expect pessimism as we approach the slow summer months.

Summary of Pivot and Technical Levels:

1219: S&P 500 52 Week High

1150: Natural Support Level

1120: 200 day Fibonacci moving average on 5 minute chart

1118: 144 day Fibonacci moving average on 5 minute chart

1127 – 1141: Major resistance level for the S&P for January 2010

1118: 144 day Fibonacci moving average on daily chart

1085: 200 day Fibonacci moving average on daily chart

Thursday Economic Calendar:

Jobless Claims / 8.30 EST

Leading Indicators / 10.00 EST

Philadelphia Fed Survey / 10.00 EST

Natural Gas Report / 10.30 EST

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual's personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010

Day Trading Economic News Analysis: S&P 500 May 19, 2010

Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!

S&P 500 Pivots

On Tuesday all the major indexes were down for the day. ‘Sell in May and go away’ theme was amplified with the European debt crisis, the oil-spill in the Gulf, and the recent 1000 point crash in the Dow Industrials. Commodities are taking a hit as copper is going low and gold is finding ground.

Gold hit a record price in dollars of $1,249 last week. Gold imports have been increasing in India prior to April and May as they prepare for a million wedding ceremonies to be held during that time period. However gold fell short 1.1% falling $13.10 to $1215 as traders and investors are retreating from the markets and finding safety within the dollar. Crude oil is finding similar wear as it is trading around $68 a barrel with the stronger dollar. However crude oil is falling 25% faster than gold according the Dennis Gartman, editor of the Gartman letter.

The S&P 500 index on the 5 minute chart shows a downward trend on Tuesday trading below its moving averages as well as January 2010 support levels. Expect the market to go sideways unless it is given direction by today’s FOMC minutes.

We have told our readers before the S&P 500 is currently undergoing a correction. The seasonal trading strategy of ‘Sell in May and go away’ is currently strong. On the daily chart of the S&P 500 we are currently trading below the January 2010 support level. Expect some support around this area unless the bears take over the market and push the index below the 144 and 200 day moving averages on the daily chart.

The market volatility index measures option activity within the market and is widely used tracking the S&P 500. Increasing volatility implies pessimism within the market and stocks sell off. Currently the market volatility is above the 144 and 200 day moving averages on the daily chart. As long as we stay above this level expect pessimism as we approach the slow summer months.

Summary of Pivot and Technical Levels:

1219: S&P 500 52 Week High

1150: Natural Support Level

1134: 144 day Fibonacci moving average on 5 minute chart

1131: 200 day Fibonacci moving average on 5 minute chart

1127 – 1141

Major resistance level for the S&P for January 2010

1118: 144 day Fibonacci moving average on daily chart

1084: 200 day Fibonacci moving average on daily chart

Wednesday Economic Calendar:

Mortgage Applications / 7.00 EST

Consumer Price Index / 8.30 EST

Petroleum Report / 10.30 EST

FOMC Minutes / 14.00 EST

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual's personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010

Day Trading Economic News Analysis: S&P 500 May 10, 2010

Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!

S&P 500 Pivots

On Friday the market indexes continued its downtrend stride as economic data is overshadowed by concerns on European sovereign debt due to the PIGS: (Portugal, Italy, Greece, and Spain) as well as the ongoing Goldman Sachs investigation.

The S&P 500 index market fell another 17 points in addition to the 50 point crash on Thursday. The continued sell off takes all the gains made in 2010. The euro rose slightly against the dollar as traders who shorted the euro took money off the table before the weekend. The PIGS crisis is pushing the possibility of the Federal Reserve raising interest rates faster than its European counterparts. However it does not seem like a viable option. Looking at the technicals, Monday’s primary pivot point is 1113. Currently the market is below this pivot point as well as the 144 and 200 day moving averages on the 5 minute chart.

As we have told our readers before the S&P 500 is currently undergoing a correction. It has lost nearly all the gains made in 2010. The index is currently below the 1127 level where it was back in mid January. The market continues to sell off due to the uncertainty of the Goldman Sachs probe leading the way for new financial regulations in the near future as well as the crisis with the European markets. Breaking the 200 day moving average of 1078 on the S&P daily chart would definitely cause a continued slide in the market.

The seasonal trading strategy of ‘Sell in May and go away’ is currently ringing true.

The market volatility index hit 40.95 above what the index was last year. The index recently hit a 52 week low last month of 15.23. On the daily chart the market volatility traded above the 144 and 200 moving averages. These moving averages which were resistance levels have become support levels. The index continues to increase as traders sell off from equities

Summary of Pivot and Technical Levels:

1219: S&P 500 52 Week High

1164: 55 day Fibonacci moving average on 5 min chart

1150: Natural Support Level

1127 – 1141

Major resistance level for the S&P for January 2010

1136: 55 Fibonacci MA on 5 min chart

1120.5: Friday Primary Pivot Point

1114: 144 day Fibonacci moving average on 5 min chart

1113: Monday Primary Pivot Level

1111: Friday’s Previous Close

1078: 200 day Fibonacci moving average on 5 min chart

Friday Economic Calendar:

Bank of England Interest Rate Announcement

Speakers:

Ben Bernanke

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual's personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010