The Market is ... The Market

Hello my Investors, Traders and Readers friends. Yesterday the market took one of the ways we mentioned in my last post. But, as always, the market incorporates an element of his own imagination.
Indeed, as soon opened, the market fell and made a break in the case of SP-500. This index broke the support level of 1,250 points and came down to 1,234.56. Until then, the situation was perceived as catastrophic and at times you could see panic in the air. Suddenly, King Market had something more to say. At 10.45 am, this index began to recover and achieve 13.45 go into positive territory for the first time in the day. At the end of the session, the SP-500 closed at 1,260.34 points, which represent an increase of 0.50%.

What does this behavior?First, I believe it is important to mention that today there has not been a turnaround. After seven consecutive days with falls, was expected to have to arrive a day of gains. However, the way the market behaved as if it represents a change of character. This is a necessary step (though not sufficient) to start up.
Second, I think it is remarkable that this situation will be built into a volume level as today. In the case of SP-500 and Nasdaq, the volume of shares traded was the biggest in recent weeks. A rise with increase in volume is always a good sign.


Third, a day where the market goes the way it did and ends at the highest level of the day, also a positive factor.Fourth, it is important to remember that in the case of DJ-30 and SP-500 broke down major support levels. This situation increases the likelihood that the rise today is only a stopover in a downward trend. Or the market will return to this minimum for new challenges.


What can we expect?
1 .- That the market start a major climb. For this to happen, in the next few days would have to confirm the rise we have seen today. More rises and higher volumes would be necessary.
2 .- That the market confirms the downward trend .- For this to happen, in the next few days should dispel the advance today. In order to confirm the downward trend, the DJ-30 should fall below 11,700 points and the SP-500, this should close below 1,250 points.  Generally, this can be seen in a very short time. 


Final ideas
1 .- I have referred mainly to the SP-500 because I think it is a good reference of what happens in the market as a whole. Nevertheless, the ideas that I mentioned is almost entirely applied also to the DJ-30, the Nasdaq-100 and the Russell-2000.
2 .- The market movements are usually between support and resistance levels. For me, it is vital to determine these levels from time to time the market. Surely the market trying to reach the next level. If break it, anger the next. And will continue until not break and back to the previous level. We will never know where the market will go up or down, but we know with relative certainty to seek its next level of support or resistance.
3 .- My commitment to you is to present my vision of these levels periodically so that you may have an additional reference, reasonable and honest every time when the market is.
4 .- Personally, I will not take any position in the market in next few days. I believe it is essential to wait for confirmation of these signals.