SPX Major Support Level
Posted: Saturday, September 29, 2007
by Arthur Eckart
PeakTrader.com
The SPX six-month daily chart below suggests roughly 1,480 will hold for the remainder of 2007, which is roughly the low of the May to July topping process, the converging 50 & 200 day MAs, and the low when the FOMC eased the money supply in September. Moreover, NYSI (NYSE Summation Index above price chart) is in an uptrend, and CPC (CBOE Put/Call below price chart) remains near historically high levels (e.g. the 200-day MA currently 1.01 is an all-time high).
SPX resistance will continue to be slightly above 1,550, i.e. the all-time high set in July, and also the prior all-time high slightly above 1,550 in March 2000. It seems likely, SPX will trade between 1,480 and 1,550 through October or the rest of the year. However, at this point, intermediate-term technical indicators suggest it's more likely SPX will rise above 1,600, perhaps in December or January, before testing the August low at 1,370.
PeakTrader Top Buys: C BSC KBH SHLD PFE DOW KG SIMG CTIC DNDN; Top Sells: SPY (above 154 next week).
PeakTrader Top Buys: C BSC KBH SHLD PFE DOW KG SIMG CTIC DNDN; Top Sells: SPY (above 154 next week).
Chart courtesy of StockCharts.com
Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.
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