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Day Trading Economic News Analysis: S&P 500 May 4, 2010

Understanding the direction of the market as well as the economic activity will lead you to profitable trades. Keep up with our live news feed and the trend with Tradermongers.com!

S&P 500 Pivots

Consumer spending pushed consumer discretionary and industrial shares higher as well as other market indexes. The S&P 500 index finished up 1202 above its natural resistance level of 1200. Last Friday the Dow was above 11,000 and finished at 11,152 on Monday’s trading. The Nasdaq is only one point below its natural resistance level of 2500. The S&P 500 index traded above the 144 and 200 moving averages on the 5 minute chart however it is still below Friday’s previous high of 1208.

Uncertainty with further regulatory agencies could cool down Wall Street as the result of Goldman Sachs probe. The market is most likely to be weak after the April 15th tax deadline. As we approach seasonal trading strategy of ‘Sell in May and go away’ we expect the market to have a correction or consolidate around the 1200 level before finding direction.

Looking at the market volatility index which has been trending lower since October of 2008 and recently reached a 52 week low of 15.23 – Monday’s trading the index is approaching the 144 and 200 moving averages on the daily chart. The market may be looking to sell off due to the uncertainty of the Goldman Sachs probe leading the way for new financial regulations in the near future.

Tuesday offers March factory orders. Factory Orders represent the dollar volume of new orders, shipments, unfilled orders, and inventories reported by domestic manufacturers. Giving a comprehensive look at the manufacturing sector, new orders can act as a gauge of demand while shipments indicate supply. Higher shipments could signal excess demand relative to supply and high inventories signal excess supply over demand. Unfilled orders represent pending goods that may be shipped. Higher unfilled orders signal excess demand over supply.

Tuesday also offers March pending home sales. Pending Home Sales Index is a leading indicator for housing activity providing demand for housing and economic trends. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Equities to watch on these numbers include: Home builders, mortgage lenders, and home furnishings companies.

Summary of Pivot Levels:

1219: S&P 500 52 Week High

1208: Friday’s Previous Low

1200: Natural support level

1199: 144 and 200 Moving Averages

1193: Last Thursday’s Previous Low and 55 Fibonacci MA on Daily Chart

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About the Author

Shamim Ziyaaudhin is one of the editors of TraderMongers.com a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers E- News

Style File – Winter 2010 Las Vegas Market

Retail D-I-Y: market profile: though smoke begins to clear, uncertainties still remain.(2010 ANNUAL REPORT): An article from: Hardware Retailing $9.95 This digital document is an article from Hardware Retailing, published by National Retail Hardware Association on December 1, 2010. The length of the article is 2470 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Retail D-I-Y: mar…

Retailers’ confidence soars over 2010. (Trends: Monitoring Industry Performance).: An article from: Hardware Retailing $9.95 This digital document is an article from Hardware Retailing, published by National Retail Hardware Association on September 1, 2011. The length of the article is 491 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Retailers’ confid…