Stock Market: Major Support Trying To Hold

The markets are again testing the double bottom from yesterdays low. This level on the SPDR S&P 500 ETF (NYSE:SPY) is $126.50. If this area breaks, the SPY will fall to $125.90. Earlier today, the $126.50 level was tested but the Federal Reserve stepped in and extended their open market operations to help save the market. The markets are continuing to spin and worry about inflation, housing problems and of course Japan, the Middle East and Europe’s debt problems. Watch this key $126.50 level. If it holds, we could rally back up into the markets close, if it breaks, $125.90 is next.

International Business Machines Corp. (NYSE:IBM) is getting smacked today. Just a few days ago this was the strongest stock in the Dow Jones Industrial Average. Now it is dragging the index down sharply. IBM is trading at $152.81, -6.21 (-3.91%). If it continues to fall today, major support will pop up at $150.00.

MasterCard Incorporated (NYSE:MA) and Visa Inc. (NYSE:V) are two of the only large caps to be higher today. Both are trading up slightly on the day. Silver and gold have moved towards the negative side showing continued weakness. If you are following the iShares Silver Trust (ETF) (NYSE:SLV), the key is to see a close below $33.40. If that happens, it is likely a sell could occur that takes it all the way down to $31.15.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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