S&P 500 - Mar 2011 Technical Forecast - Update 2
Mar 16, 2011 S&P 500 closed today at 1256.88 which is down by 5.30% from month to date that is compared to close of Feb 28, 2011 - 1327.22
As expected per my earlier update, SP 500 closed today well below its 50 days moving average of 1294.66 but above its 200 days EMA of 1210.29.
Let's look the S&P technical levels. S&P will eventually go down and test 200 days EMA of 1210, before making a significant rally.
If S&P 500 touches its 200 days EMA of 1210.20, day traders can take long positions with protective put option or with stop loss orders. As S&P 500 will enjoy significant bounce from that point.
Currently S&P is in range bound trading between 50 days and 200 days EMA. Once 200 days EMA is broken reliable, then S&P will have a free fall to its next strong support level of 1022.58 set on July 2nd 2010.
10 Days EMA 1295.97
21 Days EMA 1304.47
50 Days EMA 1294.66
200 Days EMA 1210.29
Next Support Levels
Strong Support Level 1210.29 which is 200 Days EMA
Minor Support Level 1178.59 set on Nov 17th 2010
Strong Support Level 1022.58 Set on July 2nd 2010