Wisdom

Overtrading
There are stock traders who make 150 or more trades in a single day. I am not sure they make a lot of money. I firmly believe that you can make more money by making fewer trades because it will make you focus on only the best of opportunities, and play them with a larger amount of capital so the pay off is better. By being patient and disciplined with the really high probability trades, you can maximize profitability.

SPX Jobless report selloff

Today the market lost all of this week gains after a disappointing jobless report which came at 500,000, selling pressure brought the index below it's 20 and 50 day moving averages, but at least closed above the 1070 level.
The whole week the market has traded in a range between 1070 and 1100, so let's use those levels for initial support and resistance.

Wisdom

The market is an irrational creature. To rationalize the market can be fatal.

SPX analysis for August 13, 2010

On the weekly time frame we can clearly see that in July the market tested the 38.2% Fibonacci retracement of the May highs and now it looks like it is heading again that way, below the 38.2% retracement level, there is not much support and the index can easily go down and test the 950 mark at the 50% Fibonacci retracement level.
In order to avoid this scenario, the bulls will need to bring the index to 1090 above the daily 50 day moving average, close and remain above it.
Support remains at 1060 and resistance at 1090/1100 area.

Today the market broke down the upper trend line crashing down 30 points below the 1100 mark all the way to support at 1090 and resting at the 50 day moving average.
This action broke the uptrend that started the beginning of July and opened the doors for more selling ahead.
The next level of support is at 1060 and resistance is at 1100 first and then at 1120 at the 200 day moving average.

SPX analysis for 8/9/2010

Since the begining of July the market has been in a rising wedge, which can spell trouble for the bulls as it has been stalling around 1130 at the June highs.
Technically everything looks good as the index has been closing above both the 50 & 200 day moving averages.
Tomorrow's FOMC meeting results will definitely tell us which way the market should follow.
1150 is the next resistance level and on the way down support is at 1107 first, then around 1090