S&P 500 Chart Looking For Support
The S&P 500 hit a new 52-week high earlier this week and it has been drifting lower since. Today we are tracking the daily buy/sell points on the SPDR S&P 500 (NYSEMKT: SPY) as the most liquid equity ETF on the market to help traders and investors avoid buying at the wrong time or shorting just before a intraday rally.
Erlanger Value Lines are designed to identify key levels for the intraday trader or for anyone trying to establish a new position during trading hours. The Value Lines fall into three categories: Support and Resistance, Extreme values and Range values. From a practical point of view, the Value Lines can act as targets and triggers for short-term trades.
Some think it is uncanny how these levels stop or turn back short-term price swings. We do not. Why? Because both high frequency traders and program trades have built these levels into their models that cause them to gravitate to resistance, pivot or support along with range values like the 5 and 60 minute ranges. We have compiled here the daily chart, the daily analysis for traders to use, and then we have followed it with a general guideline after the daily commentary along with a sample chart.
For Thursday's S&P 500 SPDR chart analysis, Phil Erlanger said, "Wednesday's action was contained between the resistance and support lines. We had a good hard test of the 141.11 support line (green) which resulted with a bounce from this level to finish off the day. Today we start out with a strong testing of the pivot line again at 141.24 and breaking below creating a negative day. This level will act as a ceiling until proven wrong which will bring opportunity to the long side." If you did not watch our video, here is the link for your review.
The Erlanger Value Lines can be accessed via Erlanger Chart Room. The daily service gives investors and traders access to critical buy/sell levels on the S&P 500, NASDAQ, DJIA, Oil Services Index, gold & silver, any index or equity, as well as analyzing short-squeeze opportunities and more. For more information we direct you to sign up here.
AUGUST 23, 2012
Filed under: 24/7 Wall St. Wire, Active Trader, Charts, Technical Analysis Tagged: SPY