This article is about S&P bounced off strong support. On Late Thursday afternoon (February 11th, 2016), the news came out that OPEC is ready to cut oil production. This news gave the s&p bounced off strong support in Crude and crude prices started to recover. At the same time S&P was trading at 1810 which was the low put on January 20th. Alongwith Crude recovery, markets also started to recover and cut their losses to a significant level.
S&P bounced off strong support closed at 1829 on Thursday.
The recovery in the market continued on Friday and S&P gained 35.70 points and closed at 1864.78.
Dow Jones closed at 15974 and gained 314 points.
It looks like that markets have put on the bottom for short-term and we should be seeing some short-term rally. The short-term can turn into long-term rally also. That is the way markets move.
As a trader one needs to watch the resistance levels and markets behavior at these levels.
S&P bounced off strong support resistance is at 1895 and then 1954. These resistances levels are shown in the chart above via horizontal lines.
Dow Jones resistance is at 16,303 and then at 16,875
NASDAQ 100 resistance is at 4102 level.
Crude closed at 29.44 and the resistance is at 31.4
Crude stocks were also moving up on Friday and the best one for me was SLB and I went long on Thursday via Calls.
In our Index Options Service we went long on SPY via Calls.