• S&P Midcap at Potential Support

    by  • October 23, 2012 10:40 am • Broad Market Analysis, Charts to Watch, Quick Hits • 0 Comments

    The S&P 400 Midcap (MID) has (again) been turned away from the 1,000 millennium mark, an area that has essentially been a brick wall since first reaching this area in May, 2011. However, there is potential support here in the 970 area, given that:
    1. It is the site of the 80-day moving average, which acted as support in April and resistance in July,
    2. It is the site of a trendline connecting higher lows since the June bottom, and
    3. It is a 38.2-percent Fibonacci retracement of June low and mid-September peak.

    If you are looking to buy a mid-cap name, a good entry point here, but if support breaks, don’t hesitate to cut your losses.

     

    About

    Todd Salamone is a graduate of The Ohio State University. As Senior Vice President of Research, he oversees the strategies and analysis used in supporting Schaeffer’s various option recommendation services. He is the author of the company’s weekly e-newsletter, Monday Morning Outlook, and a contributor to Bernie Schaeffer’s SENTIMENT magazine. With more than 18 years of trading experience at his command, Todd manages numerous alert services for Schaeffer’s, and has introduced many sentiment-based indicators to its subscribers. Todd has presented option strategies to retail investors in cities throughout the U.S., and is a frequent commentator on financial markets via print, radio and television, including CNBC, The Wall Street Journal, and MarketWatch.

    http://www.schaeffersresearch.com/

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