ES Support and Resistance for December 24
The S&P 500 Index (INDEXSP:.INX) was up for the week. The SPX climbed back above the 50-day moving average and remains 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.)
Friday saw the E-mini S&P 500 Futures Contract (ES) open much lower and between S3 and S2. Before the first hour was over, the ES was above S2. The ES returned to S2 and easily broke through. However, it did not go to S3 before turning around. In the early afternoon, the ES returned to S2 from below once again. This time, it was able to pass through and head higher but pulled back and closed near S2.
The range for the day was 11.75 points.
My notes say that the trading day before Christmas, which happens to be Christmas Eve this year, is not a good one when it comes to market moves and volumes. The same holds true for the week between Christmas and New Year's. Therefore, this will be my last post until January 3.
I wish everyone happy holidays.
The levels for today are:
R3 = 1447
R2 = 1435.25
R1 = 1430.75
Pivot = 1423.5
S1 = 1419
S2 = 1411.75
S3 = 1400
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