|ES Support and Resistance for October 31|
By Dennis Coleman OCT 31, 2012 8:05 AM
By the close on Friday of last week, the S&P 500 Index (INDEXSP:.INX) was down for the week. Three of the days last week were up days but the other two were much larger moves lower than the up moves on the up days. The SPX ended below the 50 day moving average while remaining above the 200 day moving average. I still think that if you are using ETFs as your method of investing that you should stay close to 100% invested using both the S&P 500 ETF Trust (NYSEARCA:SPY) and the Powershares QQQ (NASDAQ:QQQ). (Remember, there is also the alternative in the titans should you want to be in stocks. With those, you should also be close to 100% invested.
(The titans are suffering because of ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS). IMOS had a secondary offering that has taken its price down quite a lot. Things like that are to be expected with picking individual stocks. One takes the hit and continues.)
Friday saw the E-mini S&P 500 Futures Contract (ES) open just a little lower than the previous close but on a big up move as it had been down double digits overnight. It began the pit session trading near the pivot and stayed there for about an hour before moving lower. Before reaching S1, the ES halted its decline but then began trading on either side of S1 before beginning to climb again. The rise was halted before the ES reached the pivot, in an effective test. Eventually, the pivot yielded and the ES began rising again only to return and close in the area of the pivot.
The range for the day was 15 points.
The levels for today are (I'm using Friday's data):
R3 = 1435.75
R2 = 1420.75
R1 = 1414.25
Pivot = 1405.75
S1 = 1399.25
S2 = 1390.75
S3 = 1375.75