Traders Corner

Yesterday’s positive move certainly felt like a dead cat bounce. But keep this in mind: There are only two more trading days left in the quarter. For those of us who think markets are rigged, that is the only explanation we need…

The 20 day moving average moved above the 50 day moving average for the first time since the beginning of September. Although it isn’t a “golden cross”, it is still a positive for bulls.

The long-term P&F chart for the S&P 500 is still targeting 1970. If the Federal Reserve continues QE into next year, we could see that price. I would say 1830 by year-end is quite possible under that scenario, and 1970 by next April. If QE ends, all bets are off.

The S&P 500 levels to watch today:

UPSIDE: 1700-1701 (2 data points), 1703-1705 (3 data points), 1707-1711 (3 data points and August’s high), 1720 (September 19th’s low), 1725 (September 20th’s high), 1729 (2 data points and the all-time high), and 1736 (top of the Bollinger Bands).
LAST CLOSE: 1698, inside the 1697-1698 (2 data points and July’s high) range.
DOWNSIDE: 1693-1694 (2 data points), 1691 (2 data points), 1687-1689 (3 data points and May’s high), 1684 (September 10th’s high), 1681-1682 (2 data points and the 20 day moving average), 1680 (50 day moving average), 1678 (September 11th’s low), 1675 (September 10th’s low), 1672 (September 9th’s high), 1664 (September 6th’s high), 1659 (September 5th’s high), 1651-1656 (4 data points and June’s high), 1640 (September 6th’s low), 1637 (September 4th’s low), 1633 (September 3rd’s low), 1627 (August’s low and the bottom of the Bollinger Bands), 1604 (July’s low), 1597 (April’s high), and 1588 (200 day moving average).