Quick May 19 SP500 Update Shows Level to Watch

May 19, 2010: 9:50 AM CST

The S&P 500 faces another important test of support here at the 1,100 level, so it will be key to watch what happens here.

Let’s take a look:

I’ve been sharing the analysis with members of the Idealized Trades Service that the downside target of 1,100, after posting:

If the Market Will Turn Down, it will Do So Here” and updating:

Market Sells Off Exactly on Cue” (great lesson).

Here we are – with this morning’s low 5 points above the ’round number’ logical confluence target (UPDATE, as of 12:00 EST, the low was actually 1,100).

It’s an important level to watch because it represents the rising 200 day Simple Moving Average, currently resting at 1,102 along with being a simple “round number” price level at 1,100.

A quick ‘keep it simple’ update here shows us that 1,100 is important for the bulls to hold… or for the bears to break.  A break under this level lowers the target to 1,050.

Watch this level closely today and for the rest of this week … an options expiration week, by the way.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Comments Off on Quick May 19 SP500 Update Shows Level to Watch

Comments are closed.