Trading Around Support for S&P 500
01/26/2009 10:08 am EST
The support line for the SPX is now near 820 and reflects the lows at 804 last Tuesday and Wednesday. This results in a broader major support zone at SPX 800 to 820. A break of that zone would probably result in an immediate test of the closing low of 752.
At 752, we could hold again by forming a double-bottom and a volatile sideways market for the rest of this year. But if S&P 750 is crushed on high volume, look out below since there is little support before 620-650.
By Sam Collins of OptionsZone.com