Though they are baskets, indexes are much different than ETFs and support/resistance levels are particularly significant, especially for the S&P 500 and DOW. On the Chicago Mercantile Exchange S&P 500 index futures pit, traders watch these levels very closely. If the spread between the cash/futures becomes wide enough the index arbitrages move the entire stock market, at least the large cap stocks. Plus investors watch these levels very closely and speculate in futures trading. They are measurements of sentiment as well.
Do you think it's a coincidence that SKF bounced at 100 even? Are you certain you know which is horse and which is cart here?
Maybe my charts are wrong, but on what day did SKF bounce @ 100 even? Are you taking about Thursday morning's (March 18th) off the open bounce where it came within $2 from 100? If so, the simple explanation is that the DOW, NASDAQ and S&P's tanked on the open.... and SKF essentially moves inversely to these indexes, thanks to the index arbitrageurs. Do you suggest that SKF found a bottom because there were just simply buyers in SKF or rather that people were selling the sh!t out of S&P futures contracts on the open?
Within $2 from 100? It did trade down to $100. I was watching the pre-market prices. SKF traded to 99+ for a brief moment. It traded at $100 after the open. But it was a very brief moment.
in on SKF and bought FAZ @ $26.90 a few moments ago. Looking to jump out at $30+ sometime today, hopefully...
I can upload the simple OHLC line chart if that pleases you. Or even the ticker prints. You can make yourself more useful by helping with the poster's question instead of taking potshot at other people's post.
EXACTLY, infact I wonder why SKF is even traded.. there should be no BID ask on it.. just a price which reflects 2X inverse of XLF ( but I have noticed a disconnect as demand supply changes and it leads /lags on the true 2X from time to time ) it always closes close to the 2X inverse percentage of XLF. hence all technical analysis which is applicable on XLFs etc should not be used on the 2X inverses.