1150 on S&P is strong resistance

Discussion in 'Trading' started by PaulRon, Oct 1, 2010.

  1. PaulRon

    PaulRon

    I'm short with a stop above this line. Looking for S&P to break the 1020 lows.

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  2. Volume early next week will take-out the resistance @ 1150.
     
  3. Even if it does, oil in the low-to-mid 80s kills stock rallies. Oil/stocks are only correlated to a point, then they go inverse.
     
  4. S2007S

    S2007S


    Exactly, that's what so many fail to understand. Oil at these levels is the breaking point for the markets, markets could still rally higher with oil moving up near $100 but the breaking point is certainly near.
     
  5. I understand that, but any relationship oil has to equities is constantly changing. You won't see the relationship behave as it has in the past.
     
  6. PaulRon

    PaulRon

    1150 won't be seen again in this decade
     
  7. S2007S

    S2007S

    Waiting for the SPX to break below 1130-1132.
     
  8. PaulRon

    PaulRon

    Update:

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  9. Not exactly, but 80-85 is significant. Guess where oil was when the stocks hit all-time highs in Oct. 07? Just above 80. Oil continued up to 147 while stocks started their major decline.

    After both stocks and oil bottomed out in early '09, the low 80s level has continued to stop stock rallies. Sure, the relationship is dynamic and the oil "trigger number" may move to the 90s or even low 100s at some point. However, the fact is that oil/stocks rise together but only to a point. Stocks only like an oil rally until it causes economic pain (lowered consumer confidence, cutting into business profits/personal spending, etc.)
     
  10. We'll see it this month.
     
    #10     Oct 4, 2010