30,000-Foot View of the S&P 500 and a Review of IBM, Intel Ahead of Earnings

By ChartLabPro.com Oct 12, 2012 4:45 pm

Plus, Apple is in a holding pattern for now.

MINYANVILLE ORIGINAL We wanted to finish out the week with our 30,000-foot overview of the S&P 500 (INDEXSP:.INX). Currently, we have a Strong Buy (or 5 rating) on the S&P 500. For newer readers, our proprietary algorithm that we use for the S&P 500 and individual stocks has been used for the last 13 years to run institutional money.

In a recent commentary we shared this thought:

Based on our parameters, there are clearly two points on a near term trading basis which are critical to determining the market's next directional move: key resistance at 1459.00 and key support at 1421.50. For those investors / traders who are currently long, I would remain within that posture on an intermediate to longer term basis if price action remains above 1421.50. A close above 1459.00 would warrant adding to a long position.

Based on Thursday's settlement above 1459.00, traders should have added to longs. The caveat is to keep a fairly close stop on the added contracts. Basically, keep a stop at 1446.00 (daily US pit close only).

Sector Review

Health care remains the strongest sector and is rated a 5, or Strong Buy.

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