S&P bounces off floor area
The S&P moved lower from the get go, but found support at the 1878 area and started to claw it's way back. A lower dollar seems to be helping as well (although it is going higher now - so not sure of the relationship)....it might help some of the US multinationals who are suffering from the effects of the higher dollar. Also oil prices are making a comeback and everyone knows that the favorite trade these days is if oil prices go higher, that is good for stocks (that is not the historical correlation but it is the recent one).
Anyway, the S&P has rebounded and has moved above the 100 hour MA and tests the 50 hour MA at the 1906.17 level.
The really key level for the S&P was near the highs from Monday's trade at the 1946.999 area. That is the 50% of the move down from the end of December high. That level capped the rally on Monday, and that was not good for the buyers (hence the tumble on Tuesday).
Anyway, the market is stalling near the 1906 level now (trading 1900).
