Up Move: Stock Market Holds Master Level

Once again, the stock market held a major pivot point bottom and has since moved higher. This pivot point on the SPDR S&P 500 ETF SPY was at $112.50. Each of the last three trading days, the markets have hit this level. Each time it has held. Today is the master pivot day. If it holds today, the markets go into a choppy upside move for the next two weeks. In addition to the downside pivot level, there is an upside master resistance point. This level can be found by connecting the pivot highs from the last four trading days. It can also be seen on the chart below. Should the markets break above this line, it will confirm the upward move. Gold is lower today. This is a key component for any rally in the stock market. Gold rises on fear. As fear has been jumping, gold has seen an epic move up. Finally, today it is moving lower. This signals a possible pivot top in gold short term and also adds credence to the market starting an upward move. The SPDR Gold Trust (ETF) GLD is trading at $183.07, -1.52 (-0.82%). Lastly, banks stocks flushed early. Banks have dragged the markets sharply lower in recent weeks on worry over debt exposure in Europe. However, after an initial flush, stocks like Goldman Sachs Group, Inc. GS, JPMorgan Chase & Co. JPM and Bank of America Corp BAC have all turned positive. Not only have they reversed from major early losses, but a bottoming tail is now on the daily chart bottoms. This again, adds credence to a possible move up coming on the markets. Gareth Soloway InTheMoneyStocks.com