significant my ass that number means nothing truthfully. to read a price action, look at the long term view reading one or two days won't get you anywhere if you put some money in your 401k, How big is CalPERS, a lot bigger then any hedge fund out there. How is money invested there does your 401k try to sell out tomorrow? while spy is tinkering 1-2% why bother giving a shit? means nothing!
Say what you will about the exact figure, but i'm respectfully going to tell you that my support and resistance points are always within + or - 1%. Who on this earth can pinpoint to the tenth the exact place the S&P will stop? No one. And I don't pretend I can. So I say again, around 1115 will prove to be resistance. Rather than shoot the messanger, give these idea's a chance. There's much work behind anything I say. Thank you.
Ok, fair enough commentary. But when you stated the 1115.1 handle, I thought you meant that was the top. We'll watch and see what happens.
How do you trade off an importance of a #? You can only trade off how something acts around a # unless S&P starts to sit and crowd around your 1115.1, knowing if this number is significant or not, is untradeable To short or long can't be told by a #, the action can tell a lot though, but hell it can be 1117 1118 , 1114 doesn't matter, in reality focusing on the # would be the wrong thing to keep your eye on. market doesn't respect exact #'s, it respects actions (aka buy and sell movements) A strong sell from 1118 -> 1116 and suddenly stop. with vol should tell you much more then 1115.1 This would fit the correct mindset of letting the market talk to you, instread of you conjuring up your own #'s and want the market to respect it... never.
I am not smart enough to pinpoint the exact turning points to the tenth or even to the point or couple of points. That would be impossible. I should have initially given an error margin and I apologize for not doing that.
I wasn't going to bother adding to this thread but I have to step in and defend the OP. I too have been watching this level but with a slight variation. The OP is watching the last trade of 2009, 1115.10 on the S&P. I am watching the opening level of 2010. And more importantly, I'll be watching how the weekly chart closes relative to that level. I don't think fund managers will want to be long stocks while the markets are down for the year. IMO, those buyers who loaded up at the beginning of the year expected the rally to continue which it did for a couple of weeks. But then came the selloff which was fast and had a lot of volume. The last few weeks have been a very light volume rally back to break-even for 2010. Look at the volume on the weekly charts of SPY and QQQQ. On 1/04/10 the S&P opened at 1116.56 and the Dow at 10430.69. But we don't trade those, we trade things like SPY and ESH10 or YMH10. SPY opened the year at 112.37, at the same moment on the chart the buying began in ESH10 at 1119.50 and in YMH10 at 10442. So are these exact numbers that call "the top"? Not at all. But are these numbers "significant" as the OP points out? Just draw horizontal lines on your charts using these numbers and you'll see they are significant. If they make sense to YOU it doesn't matter how you find your levels on a chart as long as you trade them correctly.
Stop bathing in ignorance! Look at the long term market profile chart. You will see the distribution is from 1111.75 to 1099. Above 1112, there is hardly any volume. Watch when it pulls back to that price level. You shall have your answer in couple of days.