Investing
S&P 500 Chart Ignores Earnings Season Indicator, For Now (AA, JPM, SPY)
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Erlanger Value Lines are designed to identify key levels for the intraday trader or for anyone trying to establish a new position during trading hours. The Value Lines fall into three categories: Support and Resistance, Extreme values and Range values. From a practical point of view, the Value Lines can act as targets and triggers for short-term trades.
Some think it is uncanny how these levels stop or turn back short-term price swings. We do not. Why? Because both high frequency traders and program trades have built these levels into their models which cause them to gravitate to resistance, pivot or support along with range values like the 5 and 60 minute ranges. We have compiled here the daily chart, the daily analysis for traders to use, and then we have followed it with a general guideline after the daily commentary along with a sample chart.
For Tuesday’s S&P 500 SPDR chart analysis, Phil Erlanger said, “Monday saw the SPY close between support and pivot. It was a classic example of when SPY breaks support you do not buy until it moves back above support. Support was $134.97 and SPY closed at $135.32, so one could have scalped $0.35. Today SPY is trading above resistance. However, SPY has broken the 5 minute low of $136.01. Do not add to positions until SPY moves back above the 5 minute low. If resistance is broken, then one could short SPY as a reversal day off the open could occur.”
The Erlanger Value Lines can be accessed via Erlanger Chart Room. The daily service gives investors and traders access to critical buy/sell levels on the S&P 500, NASDAQ, DJIA, Oil Services Index, gold & silver, any index or equity, as well as analyzing short-squeeze opportunities and more. For more information we direct you to sign up here.
General Notes:
If price moves above the red Resistance value line, then the intraday bias turns positive:
July 10, 2012
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