S&P 500 Technical Analysis Tricks
The stock market is inherently unpredictable and there simply is no holy grail to investing success. That’s the bad news. The good news is that investors can gain a significant edge with technical analysis. Technical analysts look at past prices and market patterns to predict future movements. Isn’t that like driving while focusing on objects viewed through the rearview mirror? No, it’s more like driving, but remembering previously encountered speed bumps or detours and reacting accordingly. iSPYETF just published a ground breaking study on the effectiveness of technical analysis for the S&P 500.
“One of the most powerful features of technical analysis is the ability to identify important support and resistance levels,” says Simon Maierhofer, founder of iSPYETF. Support and resistance levels are noticeable on charts. That’s where battles are fought between bullish and bearish forces. Being unaware of important support and resistance levels is like entering a minefield without any clue where the mines are hidden. Continuous research articles on http://www.ispyetf.com help investors identify key support/resistance levels for the S&P 500 Index, its corresponding ETF the SPDR S&P 500 ETF (SPY), and other leading market and sector indexes.
The key to investment success is to minimize risk and maximize profits. Support/resistance levels typically act as barriers for prices and can therefore be used as trigger levels, or stop-loss levels. Prices breaking above resistance trigger a buy signal. The prior resistance level now acts as support and can be used as a natural place for a stop-loss. This is one of the easiest ways to find low-risk entries and effectively manage risk. A free report at http://www.ispyetf.com shows how to gain an edge with technical analysis.
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