Where is S&P Support – Watch for These Levels
July 23, 2012 10:38 am
There is some decent support coming for the S&P 500 futures contract. We have often looked at the S&P 500 index (cash) for levels, but the futures contract can also hold some interesting clues as to support and resistance levels.
Notice on the chart below that there is a good line of support close to the 50 DMA and the green key support level. That is 1,325. The potential for a bounce if this holds is pretty good as this is an area of accumulation. Beyond that, the 1,316 should also provide an level of support that goes back to June.
As most hedge funds and money managers look at the 50 DMA as an important inflection point, the first line at 1,325 should prove to be difficult for the bears to push through.
( The approximate levels for the S&P 500 cash contract is $1,334)