August 6, 2010 Market Recap

Today I am going to focus more on the S&P500 and Nasdaq, and not even deal with the DJIA. It is important to note that the futures went down due to unemployment reports. Yet, both the S&P and the Nasdaq went down, touched the trend line and proceeded to go back up to the 150 day moving average.

The S&P needs to go above 1,130 or it will break below the trendline proceeding lower again. The S&P has resistance there from June 21st as well, which is slightly higher than the 150 day moving average at 1122. If the S&P gets tighter in the next couple of days, it might be good to use SPY to order a put and a call one at 1130 and the other at the trendline. I will do a little more analysis today and tomorrow to see what I want to do.


The Nasdaq is very similar to that as well. It also went down and touched the trendline. I am still concerned that the Nasdaq and S&P are not growing like the DJIA. Shows weakness in the economy and not a true rally.