Courtesy of John Nyaradi
S&P 500 in critical condition as lunchtime approaches on Wall Street
U.S. stock markets got off to a rough start after a rout overnight in Asia and now the S&P 500 (SPY) finds itself in critical condition.
Battered by a decline in the Euro to its lowest level in two months, ratings downgrades to Italy and Greece and a resounding defeat for the Socialists in Spain, global stock markets reel in financial uncertainty.
The U.S. Dollar (UUP) and Treasuries are up in the standard “flight to quality” trade and here are the critical levels to watch for on today’s close.
chart courtesy of www.stockcharts.com
In the chart above we can see the S&P 500 below the critical 50 Day Moving Average and just above serious support at the 1310 level.
Any breach of these levels on a closing basis could spell bad news for the major indexes.
chart courtesy of www.stockcharts.com
On the point and figure chart we can see how a break below 1316 would trigger a “sell” signal and so here, too, we are at a critical level.
Watch these levels on a closing basis for important technical information about future market action.
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