Understanding of the importance of the market and the economy will lead to profitable trades. Stay up to date with our news feeds directl cheap nfl jerseys y TraderMongers.com! S & P has lowered kept 500 PivotsThe Federal Reserve interest rates historically low short-term, but its forecast for the economy of the United States. Solving a problem is the shadow of inflation. This kind of inflation in the U.S. economy creeps, and slow economic recovery. The S & P 500 currently hampered listed below the moving averages, Fibonacci numbers of the 5-minute card. After the announcement today on the market FOMC lower in the S & P 500, even a little higher in the Dow Jones.On the daily chart of the S&P 500, we are between the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.
- If we break above 1110 then expect the January 2010 resistance levels starting at 1125 to hold back the market during these low volume summer months.
- If we break below 1087 then be wary of picking bottoms in the market as we may be expect to go even lower due to the slow down in manufacturing, increasing jobless claims, the European debt crisis, and the fears of another ‘flash crash'
The Chicago Board Options Exchange (CBOE) Market Volatility Index (VIX) measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar.
The Market Volatility Index is currently between 30 and 25, which usually means that traders and investors are switching from cash to riskier assets such as equities and other financial instruments. We have stated before that we will be within a trading range before the FOMC Announcement.
If the volatility breaks through the 25 level then the markets show an influx of equity purchases. The 25 level is a major level of support for CBOE Market Volatility Index as it is the convergence of the 144 and 200 day moving averages.
This index must break down below 25 or bounce above 30 for the markets to show a consistent momentum and direction. Today's FOMC announcement stayed within a range between 25 and 30 so most likely we will stay within this range throughout the summer months due to low volatility.
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