Clear Levels in the S&P 500

Mondays’ trading was an example of how important it is to know what the important levels are in the markets.  Regardless of the investing style, few will argue that this knowledge will not benefit an investment process when utilized correctly.  Some of these levels are so precise and exact that no academic or fundamental analyst would be able to adequately explain the reason for their formation but clearly they exist.·        

For example, from February 2015 through early July of 2016 the 2,120 level was clearly defined resistance for the S&P 500.  A quick view of the chart shows that this is obvious.  In the shorter-term it is clear that 2,160 has been import support since the beginning of July.  The low Monday was 2,120 (2,119 to be exact).   The close was right at 2,160 (2,159 to be exact).   Knowing how important the 2,120 level is could have led to profitable trading because once it became apparent when the market opened that this level was going to hold momentum buyers came in and the market rallied. 

In the shorter-term term it is clear that 2,160 has been import support since the beginning of July.  The low Monday was 2,120 (2,119 to be exact).   The close was right at 2,160 (2,159 to be exact).  It is important to watch these levels in the near-term.  If it fails at 2,160 this could be the first indication that a new downtrend is beginning.