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Support and Resistance Levels for Stocks, Financials, and the Dollar

|Includes: SPDR S&P 500 Trust ETF (SPY), UDN, UUP, XLF
JW Jones gives an in-depth analysis of key support and resistance levels on the S&P 500 (SPY is the ETF equivalent), the US Dollar (NYSEARCA:UUP) and Financials (NYSEARCA:XLF).  Below is his conclusion along with a chart for SPY:

Given the amount of uncertainty and risk associated with current price action in the S&P 500, I would urge readers to monitor risk closely and review open positions. While I do not necessarily believe a horrific selloff or a Black Swan event is waiting in the shadows for unsuspecting traders and investors, it is impossible to rule out a breakdown of the key pivot lows from March of this year. I am leaning toward the mindset that a short to intermediate term bottom may be forming, but I will not be doing any of the heavy lifting.
I will wait patiently for signs that price action is going to reverse before getting involved. Trying to pick tops and bottoms is a fool’s game, particularly when the game is changing rapidly based on news coming from Europe which can dramatically alter the tape. Risk is extremely high at inflection points such as the one we are currently near. Some of the best traders I know are successful because they refrain from trading when price action is volatile and risk is abnormally high. Sometimes sitting on the sidelines and listening to Mr. Market talk can be the best trade of all!




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