Thursday, 15 August 2013

S&P500 is make or break level=1685?

Why 1685 on S&P500 is make or break level?

 

 

 

Today is going to be interesting day on US markets. Everyone will be watching just one level i.e. 1685. Here’s why

Have a Look at last 19 trading days: Watch the Support
 
As you can see in the chart above: S&P500 has maintained its head above 1685 since last 19 trading days. Yesterday, market closed with weakness just at 1685. Hence, any follow through weakness today will breach that level. But will Bulls give up so easily.
US market flat in August
US market has gone nowhere in August but look at global markets in August: Most of them have made impressive comeback -
Brazil: 6.1%
China: 5.3%
Mexico: 4.0%
Germany: 1.9%

Decisive breakdown below 1685 will set the market for decline to 50 day moving average which stands at 1655. At the time of writing this post – Futures were sharply lower. So, lets see what happens

 

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