US Major Markets: Support And Resistance

US Major Markets: Support And Resistance

$SPY, $DIA, $QQQ

The concepts of Support and Resistance are 2 of the most discussed attributes of technical analysis, they are often regarded as a subject that is complex by those who are just learning to trade.

Traders refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction, either North or South.

Most technical traders incorporate the power of various technical indicators, such as MAs (moving averages), to aid in predicting future short-term momentum. A MA is a constantly changing line that smooths out past price data while also allowing the trader to identify Support and Resistance.

The price of the asset (index, stock, commodity, bond) finds support at the MA when the trend is up, and how it acts as Resistance when the trend is down.

Most traders experiment with different time periods in their MAs so that they can find the one that works best for this specific task, the most used are the 10-Day, 20-Day, 50-Day, and 200-Day MAs for stocks.

Support and Resistance

DJIA Close: 16,643.01

Resistance

16,653 the 10-Day EMA

16,736 a high from May 2014

16,946 a Jun 2014 high

16,970 the Jun 2014 high

17067 the Dec 2014 low

17,068 a Jul 2014 high

17,152 a Jul 2014 high

17,351 the Sept 2014 high.

The 50-Day EMA: 17,378

17,515 a Jul 2015 low

17,585 a Mar 2015 low

17, 715 the Jun 2015 low

17,786 the Mar 2015 low

17,748 a mid-Apr 2015 low

Support

16,632 the Apr 2014 high

16,506 the Mar 2014 high

16,333 the Aug 2014 low

16,117 a Oct 2014 low

 

S&P 500 close: 1988.87

Resistance

The 10-Day EMA: 1989

1991 the Jul 2014 high

2011 the Sept 2014 high

2046 the Jul 2015 low

2062 the Jan 2015 lower high

The 50-Day EMA: 2061

The 200-Day SMA: 2075

2076 the Nov 2014 high

2094 the Dec 2014

2115 a Mar 2015 high

2119.59 a Feb 2105 high

2126 the Apr 2015 high

2130 the Jun 2015 high

2135 the May 2015 all-time high

Support

1972 the December 2014 low

1905 the Aug 2014 low

1902 a May 2014 high.

1897 the Apr 2014 high

1883.57 a Mar 2014 high.

1867 the Aug 2015 low

 

NAS 100 close: 4828.32

Resistance

4825 a Mar 2015 low

4912 the Apr 2015 low

The 200-Day SMA: 4913

4974 the Jun 2015 low

The 50-Day EMA: 4982

5008.57 a Mar 2015 high

5042 the Mar 2015 high

Support

4815 the Dec 2014 high

4811 the Nov 2014 high

4774 the Jan 2015 high

4751 a Jan 2015 high

4631 the Oct 2014 Northside Gap mark

4610 the Sept 2014 high.

4566 the Oct 2014 lower Gap mark.

Have a terrific week.

Paul Ebeling

HeffX-LTN

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