By John Pisanchik

This week ended on a choppy and somewhat weak note. The 885 area did provide some level of support both yesterday and today. The market was trading on either side of it today until later in the day, where we saw a low of 878.94 in the S&P Cash. However, at that point, the market did not stage a further decline, it actually traded back towards the 885 level, to close at 882.88.
So where do we go from here. If the market is truly going lower, then it will need to trade lower from the start of next week. The truth is, that since it is so close to the 885 level, it could easily rally above it and just chop around. But if we get a lower low and a lower close on Monday, then that opens the door for momentum to build on the downside. If we do start to trade lower, the next support level to watch is 865. After that is a range of 850 to 855. A close below 850 in the short term would be very bearish and at that point we can start to project where the short term and intermediate term objectives may be. Happy trading and have a great weekend.

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Filed under: Market Opinions

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