fbpx In focus: Bulls take charge | Option Strategist

In focus: Bulls take charge

By Lawrence G. McMillan

The market, as measured by the Standard & Poors 500 Index, finally broke out of the tight 1190-1220 range this week — to the upside. Since then there have been two attempts to pull back, but they have met support near 1220, and so that is now a confirmed support area.

The chart of the S&P 500 now looks poised to assault major resistance at 1260, which repelled the current advance on Monday. That may be more difficult to overcome, but given the generally (although not uniformly) positive backdrop, it should be able to do so. The 200-day moving average is at about 1270, and a rise above there would certainly draw money into the stock market. Also, resistance levels exist at 1310 and then at the yearly highs (1350-1360).

To read the full article, subscribe to The Market Watch Options Trader.

Share this

Option Strategist
Blog Search

Recent Blog Posts

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.