Monday, September 12, 2016

S&P 500 Key Support Levels: Big Speech Today

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We called out a key level at 217.68, which predicted a down move.
We wanted to review where we see support levels for the meantime.
We are still bearish and would not get long but we think after a big fast move it's important to know this is a decent profit.

On August 25 and August 31st we pointed out a key level the market closed below, which hinted that the market "showed cracks." It proved to be correct at SPY 217.68. For now the market has meaningful support between about 210.50-212. We hit key targets that are fair to take profits for shorts. We don't want to get long but we don't want to be greedy either. There is a key speech today which can go either way of course.
Let's start with a chart.
Chart: Interactive Brokers
We Had A Nice Move Already
We have a few lines here. One arrow says "Open?" which is where SPY looks like it may open. The other arrows point out big moves like we had Friday and compares them to the biggest moves we've seen in the last two years. Friday's move was large similar to past moves.
Still Bearish But After A Nice Move It's Fair To Take Some Profits Or Shrink
As we move into the range 210.50-212 we have a lot of action which creates support built over the last couple of years.

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