I am posting key areas that I am keeping an eye on. The market has certainly become a lot more volatile as of late but has still been respecting areas of support and resistance
. The market sliced right through the support channel that had been made throughout this year. There was a lot of accumulation in that 205-213 range, and I am looking at this area to become tough resistance to break through on any rebound. The market finally found support at an area that has served as a bouncing point for stocks since April of last year. This area of 182 was the safety net as stocks sold off late last year in October. Considering the magnitude of the drop we have had, any further decline in the near future beyond this key area of 182 would be a very bad sign for stocks.
As we look forward to the next few weeks ahead, we want to watch how price reacts to the minor support and resistance
levels. Since rebounding from its' lows, the market stopped at previous support just below 200. This previous support has now become an area of resistance for now. After the market backed off its' area of resistance, it found some support around the 190 area. Cracking this area of minor support would be a sign of trouble.
These are not the only areas of support and resistance
. However these are the key areas that I will be watching. What price levels are you watching? Let me know!