Video Review of the Indexes 8-29-2010
The indexes tested and validated key levels last week for the short-term and longer-term timeframes. So although not much progress was made, it was still technically a productive week for the market.
Broken support zones are now serving as resistance, and as of Friday, the indexes are sitting just shy of those levels. That brings potential for movement in the week ahead. We also have a lot of economic news ahead of the coming 3-day weekend for Labor Day, so it’s time to get prepared!
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me suggest going full-screen for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Market Sniper | Aug 29, 2010 | Reply
Thanks, Jeff! Good stright forswrd analysis of important price levels. Quick question, the the dvent of weekly option expiration, what effect should tthat have on the VIX?
TheStockBandit | Aug 29, 2010 | Reply
Let me begin by saying that I’m not an option specialist, so you might check with someone else on this for a more detailed answer.
With that said…
I believe only about 28 weekly options are offered right now, so since the VIX is based on implied volatility for the S&P 500 (which is of course 500 stocks), I wouldn’t think it has any effect whatsoever. The whole idea behind weekly options is to allow shorter-term contracts for speculation or hedging, and that shouldn’t have much or any effect on the market volatility.