The Importance of the 1400 level on the SPX

HedgefundTrader2 · Apr 27, 2008

Quote from amanda33:

I'd think most traders were bearish a few weeks ago, the S&P was dropping like a stone, and was very similar to the previous bear market. Also the news had been full of dire stories and predictions, with negativity and losses fueling every indicator I looked at.

Then there was the recent contrary indicators, which I took notice of, and wasn't so aggressive in my bearish stance but still kept a watchful eye to the downside. I'm sure most of the other people interested in the markets did the same. It looked just like the previous bear market, after all.

It's been a very interesting 8 months but I've never resorted to being either a shepherd or a sheep, I follow my own route. If you agree with my views so be it but I derive absolutely no satisfaction from you following me - my ego is not that big.

I agree with you (not a sheep) that the 200ema is an important resistance level right now. FWIW I think we'll go through it, although I've been long for a while now so I would say that. The 50 and 200 day averages crossing will be a clearer sign, of course.

/baaaaaaaaa\aaaaaaaaaaaa

Trade these stocks BIDU, POT, MOS, AGU, X, HES, APA, GOOG, AAPL and you will learn to respect the beast and its power.

smilingsynic · Apr 28, 2008

Quote from HedgefundTrader2:

Keep buying your SPY puts and keep getting hit every day till you can't trade. We shall see you in the poor house this year. Just in case let me remind you the world is not the same as in 2001. There is lot on the table done by the Feds and Congress, you may never see a recession either.

The Feds were very active in 2001, if you may remember.

Buying has been tepid--there is none of the enthusiastic hands-over-fist buying of the mid to late 90's. Last week's narrow range suggests either distribution or consolidation. Which it will be, we soon will see.

HedgefundTrader2 · Apr 28, 2008

Quote from smilingsynic:

The Feds were very active in 2001, if you may remember.

Buying has been tepid--there is none of the enthusiastic hands-over-fist buying of the mid to late 90's. Last week's narrow range suggests either distribution or consolidation. Which it will be, we soon will see.

This is not 2001. The world has changed a lot since, we are more global than 2001. Most US companies are much more global than 2001.

Charts and Technical Analysis tells a different story.

The congestion area in SPX is a consolidation for a breakout to the upside most likely. There is no resistance till the 200 average so it can fly...trying to short the market now is a mistake, you will eat losses.

blue2and2 · Apr 28, 2008

I'm cautiously optimistic that the double bottom we've put in will hold.

The SPY VWAP is about @ 135 y-t-d so bulls are on the + side.

Also, the Fed is printing money as fast as it can â in order to save the banking system from annihilation -- where's it gonna go?

stock_trad3r · Apr 28, 2008

jackstone hasn't made one correct call on this forum since he joined...

There is no compelling reason for the market to go much lower.

HedgefundTrader2 · Apr 28, 2008

Quote from blue2and2:

I'm cautiously optimistic that the double bottom we've put in will hold.

The SPY VWAP is about @ 135 y-t-d so bulls are on the + side.

Also, the Fed is printing money as fast as it can â in order to save the banking system from annihilation -- where's it gonna go?

Feds are orchestrating the rallies , they will make sure that SPX stays above 1400 and goes from there. Just remember they are a major participant in this game that is rigged. They in fact own the Casino...they can do what they like to do. One thing is sure they have screwed these shorts and bears pushing them down to hell.... LOL

tommymoose · Apr 28, 2008

Quote from HedgefundTrader2:

There is no resistance till the 200 average so it can fly...trying to short the market now is a mistake, you will eat losses.

This may be true if all you use for your analysis is moving averages. There happens to be very strong resistance from 1405-1425. I would be very surprised if this zone was breached without a pullback of at least ~70 points. I'm as willing to jump on the long side as the short side, but only when the opportunities arise. This is not one of those opportunities. Well, no more need to E-Speculate... gametime in less than 8 hours

HedgefundTrader2 · Apr 28, 2008

Quote from stock_trad3r:

jackstone hasn't made one correct call on this forum since he joined...

There is no compelling reason for the market to go much lower.

Agree 100% + some more.

Jackstone is a perma bear. He is angry, bitter, revengeful and hoping for the worst for eveyone while he scalps few ticks from his eminis.

Some people are born to live in a lose / lose world.

HedgefundTrader2 · Apr 28, 2008

Quote from tommymoose:

This may be true if all you use for your analysis is moving averages. There happens to be very strong resistance from 1405-1425. I would be very surprised if this zone was breached without a pullback of at least ~70 points. I'm as willing to jump on the long side as the short side, but only when the opportunities arise. This is not one of those opportunities. Well, no more need to E-Speculate... gametime in less than 8 hours

You see that congestion area on SPX, thats consolidation, more likely to be resolved in the previous direction of the movement. There is not much standing till 200 day.

Make sure you stay on the right side of the market or get burned in hell like these shorts and perma bears.

Feds will insure that SPX never lowers down below 1400 again. They will do some thing that will keep the ball up higher, just watch.

cszulc · Apr 28, 2008

Can't be bullish at this point. We're still at a major resistance point. Bulls can't close this above 1400.