Stock Market 101 – S&P 500 Stock Market Analysis 10-19-2011

This is a S&P 500 stock market recap of today’s action and what we are looking at over the next couple of weeks. We are seeing more of the same with the stock market stuck in a range on multiple time frames. Currently our support is around 1190 on the S&P futures contract, 1200 on the SPX or S&P 500. What I am looking for is if this market is building a ‘coiled spring’ and ready to break out to the upside or if we will see more selling pressure and perhaps a breakdown. If we see a breakdown below 1180-1190 on the S&P, my sentiment will turn bearish and I will have a hard time believing in the rally. Don’t get stuck with your feet dragging, be proactive not reactive. If your stock is breaking down, sell it and take profits.