The S&P 500 faces another important test of support here at the 1,100 level, so it will be key to watch what happens here.
Let’s take a look:
Click on image to enlarge!
I’ve been sharing the analysis with members of the Idealized Trades Service that the downside target of 1,100, after posting:
“If the Market Will Turn Down, it will Do So Here” and updating:
“Market Sells Off Exactly on Cue” (great lesson).
Here we are – with this morning’s low 5 points above the ’round number’ logical confluence target.
It’s an important level to watch because it represents the rising 200 day Simple Moving Average, currently resting at 1,102 along with being a simple “round number” price level at 1,100.
A quick ‘keep it simple’ update here shows us that 1,100 is important for the bulls to hold… or for the bears to break. A break under this level lowers the target to 1,050.
Watch this level closely today and for the rest of this week … an options expiration week, by the way.
For more daily updates from Corey, visit his blog at Afraid to Trade.com