Gold is off to the races once again as central banks continue to look for a way to keep European Union countries from defaulting. At this time, gold seems to be the only safe haven currency in the world that investors have any faith in. The SPDR Gold Shares(NYSE:GLD) are trading higher by $1.90 to $173.70 a share. Traders can watch for some minor intra-day resistance around the $174.00 level.
Today the markets were crushed again, the SPDR S&P 500 ETF (NYSE:SPY) falling from a close yesterday of $125.49 to $123.53. This epic fall came on the back of continued worry about Italy, Spain and fear of a new possible deep recession in the United States. Volume was huge on the flush that took the markets into the 10:30am ET time frame. Then, all of a sudden things turned.
The markets are looking past the Senate vote today at 12pm ET and they do not like what they see. It looks like the debt ceiling and spending cuts bill will pass and be signed into law by President Obama. However, the economic news continues to be ugly, Italy and Spain are a mess and the U.S. still faces a possible debt rating downgrade.
Even though the market gave up a lot of the early gains that came on low participation from investors we are raising the support/resistance levels on the DJIA (DIA) (12,480/12,570) and S&P 500 (SPY) (1,316/1,331)...The support/resistance levels on the Nasdaq Composite (QQQ) (2,782/2,799) is the same...The Semiconductor Index (SOX) underperformed the indexes and was down 0.3%-the Semi ETF SMH was d
The SPDR S&P 500 ETF (NYSE:SPY) which mirrors the S&P 500 has a classic head and shoulder pattern developing. A head and shoulder pattern is a bearish pattern. The neck line of the head and shoulder pattern must be broken to see this pattern play out. Note the neck line below in pink. If the market trades below, the SPY could easily fall to a $130.25 target in the coming days.
The Semiconductor Index (SOX) fared the worst in today's session with a decline of 2.9% and the Semiconductor Holders (SMH) ETF was down 3.1% on heavy volume-the SOX and SMH gapped down and have gaps between 402.66/405.48 and $33.64/$34.03, respectively-we are keeping our eyes on these levels as gap usually get filled in the near term...We are lowering the support/resistance levels on the DJIA (DI
Commodities Explode Higher On Bernanke Stimulus Talk
This morning, the chairman of the Federal Reserve, Ben Bernanke, is testifying in front of the House Financial Services Committee. Chairman Bernanke has hinted that further stimulus could be needed if the market starts to slump. Most of the leading commodity stocks have jumped higher on this news. Copper, steel, iron ore, gold, and silver are soaring higher on this news.
We are lowering the support/resistance levels on the DJIA (DIA) (12,480/12,570), S&P 500 (SPY) (1,316/1,331), and Nasdaq Composite (QQQ) (2,800/2,815)...The S&P 500 slightly went below its 50-day moving average of 1,316.44 to 1,316.42 and closed above it at 1,319.49...The DJIA and Nasdaq Composite are 130 and 40 points above their respective 50 day moving averages...The selloff was not unexpected
Stocks had somewhat of a comeback and avoided a disaster after the jobs report disappointed...The Nasdaq Composite finished nears its highs for the day and the S&P 500 finished near the middle of its intra-day trading range...Even so based on the stock market direction we are are lowering the support/resistance levels on the S&P 500 (SPY) (1,343/1,345) and Nasdaq Composite (QQQ) (2,835/2,873)...Th