3 Major Levels Of Support To Watch On 3 Major Indexes
Share
Much to the dismay of the many market participants, the rally has taken a bit of a breather. What seemed like clear skies above have now suddenly added some clouds. Ever since the call was made that we have entered a new bull market, stocks have largely hit the pause button on moving any higher, a curious thought when you think about it. However, there could still be hope yet.
Although the market appears to have begun the process of consolidation or even an out right move lower, this just shine a little bit of hope on where the markets could be headed next. During the course of any rally or bull market, there are some pit stops along the way that we need to look out for. While these are good for the overall prospects of moving higher, we want to avoid trying to over-trade while we are in them.
For the S&P 500, the mark to watch is going to be the 4300 mark. If we pullback to that price and hold, this could be the best spot to look for going long again. This will tilt the risk vs. reward into your favor. This level is a whole psych level and many traders may be watching the same level.
As for the Dow, it also has a level that it needs to hold if the rally is set to continue, this level would be around 34,500. Price action around these levels will be key. It will tell you where the buyers are sitting and if there are any orders waiting to be filled, sending the markets higher… we would hope.
The Russell also has a level traders will want to be weary of, this one is 1,900. If these levels don’t hold across the board, we will no doubt see more red before the bulls take off running again. Be sure to have these levels marked out on your trading screens as they will come into play as the week wears on.
Join my Smart Trades options trading service today to see exactly how my students and I trade these types of scenarios! Smart Trades is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today and as always…
