Next Week’s Key Technical Levels to Watch
In case you’re wondering, here are the key levels to watch on the market next week;
S&P 500: 2,940 & 2,950; These marks are the site of the SPX’s 50-day which is now in a bearish decline and chart resistance as indicated by the horizontal red line in the chart below. We may see a close above it, but expect to see traders sell into this technical rally.
Nasdaq Composite: 8,000; This is not only round-numbered resistance but also near the tech heavy index’s 50-day (which is also declining). Tech stocks have been leading this market lower and that doesn’t look to change.
Dow Jones Industrial Average: 26,500; the site of the Dow’s 50-day and also chart resistance that was formed in July and August.
CBOE Volatility Index: The VIX is trading in a bearish patter and a close above 20 will trigger the next round of selling. Start shorting on a move above 20 next week because the VIX will be heading to a spike above 25 on the next pullback.