Hello traders everywhere. There was no doubt that the market would bounce back today after a losing day on Tuesday, after all, that's the cycle we've been in for a while now. But more importantly, it's the trading range that we're currently stuck in. Not familiar with the term "trading range?"
A trading range occurs when a security trades between consistent high and low prices for a period of time. The top of a security's trading range often provides price resistance, while the bottom of the trading range typically offers price support. In this case, we will be looking at the 50-day and 200-day moving averages. With that definition mind, let's take a look at the major indexes.
All three major indexes, the S&P 500, DOW and NASDAQ, are all stuck in a trading range between the 50-day and 200-day moving averages. This range began almost exactly one month ago on August 5th, where we saw all three indexes lose roughly -3%. The NASDAQ led the way with a daily loss of -3.4% with the S&P 500 and DOW close behind with losses of -2.9%. Since then they have failed to break out above their 50-day MA's, the level of resistance, while the 200-day MA is providing a level of support.
Key Levels To Watch This Week:
- S&P 500 (CME:SP500): 2,943.31
- Dow (INDEX:DJI): 25,339.60
- NASDAQ (NASDAQ:COMP): 8,065.24
- U.S. Dollar (ICE:DX): 97.44
- Gold (NYMEX:GC.Q19): 1,542.60
- Crude Oil (NYMEX:CL.N19): 57.13
- Bitcoin (BITCOIN:BITSTAMPUSD): 11,589.73