Why Bulls Need to Watch SPX 1,880
Click to Expand
In May 2013, the S&P 500 Index (SPX) broke out above twin peaks that occurred in March 2000 and October 2007. The breakout above this 1,555-1,560 area likely brought in market participants that were waiting to enter the market on a breakout, instead of risking making an investment at prior tops on a chart. With that said, we find it of interest to identify points at which these new investors experienced certain profit levels, specifically 10% and 20%, as such returns might inspire some profit-taking. We notice that the 1,710 area, which is roughly 10% above the breakout level, acted as a major speed bump beginning in August 2013. This area was finally taken out in October, with the index pushing higher to our second point of interest on a chart, which is 1,880. As you can see, 1,880 has proven to be very significant since March, as it represents a 20% profit for those who bought the SPX breakout in May 2013. Bulls are hoping that profit-taking will gradually subside around 1,880 to set up a short-term breakout within the long-term uptrend.
I don't have much to add regarding the 1,880 area - Todd did a great job. I'm more amazed the SPX is just 1% away from a new all-time high. With all the concerns over tech/small caps/momentum names diving earlier this month, it is just amazing the SPX is still this strong.
Bigger picture, everyone and their mother is fully aware how weak the May-October period is. Wouldn't it be something if the masses were wrong and we rallied during this historically weak period?
Why OIH Is Finding Key Support at $52
A Phenomenon Worth Watching in 10-Year Yields
Global X Social Media ETF (SOCL) Tests Key Chart Levels
Recent XIV Action May Bode Well for Bulls
Why LinkedIn's Trendline Breach Could Be a Buy Signal
9 Levels to Watch for Apple Inc.
Keep an Eye on Twitter Around $40
Has SPDR Gold Trust Found a Short-Term Floor?
Why We Probably Haven't Seen the Last of RUT 1,100
Another Reason to Watch Dow 15,000
Why TLT Traders Should Heed Round-Number Returns
For Bonds, the Bottom Could Soon Fall Out
Why Aren't Stocks Tanking on Shutdown News?
SPDR Gold Trust Rally Runs Into Resistance
Mid-Caps Nearing a Triple of March 2009 Lows
'Huge' Doesn't Begin to Describe S&P 1,550
Grading Stocks, Bonds, and Gold
Apple's One-Year Return Swings Into the Red
Is LinkedIn Poised for a Breakout?
Why $500 is the Apple Level to Watch Right Now
Fiscal-Cliff Whispers Spark SPX Fits and Starts
Time to Short Oil-Services Stocks?
After Two-Day Swoon, Where Will SPY Find Support?
Option Volume Spike May Signal SPX Inflection Point
A Breakout No One is Talking About
Options Indicator Flashes Potential Buy Signal
Ways to Hedge on Apple (AAPL) Before Earnings
LinkedIn: The Uncommon Trendline We're Watching
Two Speed Bumps for Builders
Does Coal Have Farther to Fall?
LinkedIn Looks to Challenge Looming Resistance
Two Valuable Investing Lessons from the Homebuilders ETF
Is Bank of America Poised for Another Leg Lower?
The New VIX Resistance Level to Watch
Why 2,200 Matters for the EURO STOXX 50
SPDR Gold Trust Stares Down a Technical Sticking Point
A Hidden Resistance Level for JPMorgan Chase
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.