≈ An important technical price point ≈
Jobless claims data came in this morning which propelled the market to sell for another day (at least at the open) following a few days of red across stock prices. The broad markets are mixed over the last few weeks, with general strength in communications and technology and weakness in most other sectors.
The SPY, the popular ETF that tracks the S&P 500 has now come down into a price level that is especially important. Support on the daily candlestick chart is going to be tested today. Will it hold? We do not know yet, but the price test will have significant implications on market sentiment.
When support holds on the broad markets, its wise to look to some of your favorite bullish setups as potential trading opportunities. If support breaks, you should have a list of bearish setups ready so you can play whatever the price gives you.
Remember, as a trader, Price is King, and right now, price is set for a big test.
Chart of the Day
Above, you see the daily candlestick chart for the SPY with pretty clear Support and Resistance zones developing. Which way will the range break? Right now, price is testing support.
Video of the day
Support Zones vs Support Pivot
Support Zones are an important concept for traders and learning to identify the formation of a new support pivot can be an excellent buying opportunity for traders looking to cash in on the upward movement in price that follows the formation of a new support zone pivot.
What HollyWood HAs Taught ME About Fundamental Analysis
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