Markets Bounce Off Master Level

The markets sold off early in the session, tagging a master pivot low from April 18th, 2011. This low on the SPDR S&P 500 ETF (NYSE:SPY) was at $129.55. This level represents a short term major support for the market and it is very possible a multi day bounce will occur. In addition, sentiment is about as bearish as it has been in 2011. This also works as a solid contrarian indicator telling us a small bounce is on the horizon.

Key stocks are also hitting major support areas which tell Wall Street traders to also expect the markets to gain traction. If the major components of the Dow Jones Industrial Average are hitting support then the Dow Jones Industrial Average should be at support as well. Bank of America Corporation (NYSE:BAC), General Electric Company (NYSE:GE) and others are all at or very near major support levels.

Investors are heading for safety today as gold and silver are up sharply. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $151.38, +1.16 (+0.77%) while the iShares Silver Trust (ETF) (NYSE:SLV) is trading at $36.18, +0.84 (+2.38%). With continued worries out of Greece, Portugal and other European countries and the United States struggling with jobs, investors are running for the safety of gold and silver. Find the exact levels to go long and short BAC, GE, SLV, GLD.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

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 InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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