Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

S&P 500, US Dollar, and Potential Near-Term Movements to Monitor

By

A pullback to the 1384 areas on the S&P 500, if not a bit lower, could happen in the coming days.

PrintPRINT
The S&P 500 (INDEXSP:.INX) is likely to pull back from a 66-point rally off the 1343 pivots. Those pivots were right at a Fibonacci fractal retracement of 61.8% of the summer rally. That rally ran from 1267-1474 as we all know in hindsight, and the correction was a normal correction within a bull cycle.

Near term, we had a nice run to 1409 and met resistance there. I would expect a pullback to the 1384 areas on the S&P 500, if not a bit lower in the coming days. The US dollar is likely to get a bounce, which will also pull down precious metals along with stocks near term.

I think this could be an opportunity to buy as we approach pivot pullback buy points, but of course I will monitor in the event the pullback becomes more dire than expected.

Below are charts of the US dollar and The S&P 500 Index and potential near term movements to monitor. At my firm, we closed out long positions in Direxion Shares Exchange Traded Fund Trust (NYSEARCA:NUGT) with nice gains yesterday as well as stocks with trading profits while we watch the pullback action.





Twitter: @activetrading

Editor's Note: David Banister is the chief investment strategist and co-founder of ActiveTradingPartners.com, a small-cap portfolio and market advisory service.

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE