The S&P 500 Looks Set To Recover
Alex Gurr | Oct 21, 2014 03:18AM ET
The S&P 500 is the one to watch as of late, as earnings season comes about and the markets become very bullish. Markets were led in part strongly by Apple (NASDAQ:AAPL) today, which saw a boost to its earnings and its forecast over the Christmas season, as it seeks to boost revenues and margins via its new phones which we have all seen and heard about.
I don’t normally talk about companies at all, but apple takes up 3.3% of the weighting of the S&P 500, and so any positive move for them will impact the confidence of investors who are holed up in equity indexes in the US market.
Looking at the S&P 500 on the charts, it’s clear to see that the bulls have taken control of movements higher, after the recent touches on the long term trend line from the 2011 dip. For a while, the market was quite bearish on the touch, but has since rallied back quite strongly.
Resistance levels are looking strong, but the S&P 500 ignored a strong level as it rallied higher. However, it’s worth paying attention to them at present and they can be found at 1923.78, 1951.42 and 1976.23.
Another key area which traders should take notice of is the 200 day moving average. I know a lot of people ignore moving averages when trading, but they shouldn’t as they provide a lot of information, and markets from time to time will play of them quite happily.
As we can see the market has rushed up in aftermarket hours and touched the moving average and is now using it temporarily as resistance. A solid breakthrough here would be bullish up until 1923, however, we will likely have to see momentum through the moving average and a confirmation of further bullish trending.
Overall, the S&P 500 is looking solid, after the recent market correction. But the US economy is still ticking along and low oil prices will likely lead to a boost for company's future earnings prospects as well. Perhaps the bulls are still alive and well in the market, and they’re now here to catch the falling knife and put things right.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.