Summary
- Everyday investors are exposed to a lot of market noise.
- By monitoring these daily and monthly charts an investor can stay on the right side of the market.
- Price action along with the 100-day ma provided several profitable opportunities.
- I show 6 examples and how an investor could see the turning point.
The monthly chart helps clear potential noise from the daily chart. Support and resistance levels along with price activity relative to the moving average helps provide us with long-term clues.
Volatile days and talking heads on CNBC and Bloomberg can sure put a scare on investors. By keeping in mind the two charts I present below, an investor can filter out the noise and stay on the right side of the market, if not benefit from the short-term pullbacks. The charts use the SPY (S&P 500 ETF) which is easily accessible on the web and through trading platforms.
The first chart shows the SPY along with the 100-day moving average and the 200-day moving average. Let’s start by looking at 2013 and 2014.
To read the entire article go to: Two Simple Charts To Monitor The S&P 500
