Markets Bounce Off Master Level
The markets sold off early in the session, tagging a master pivot low from April 18th, 2011. This low on the SPDR S&P 500 ETF (NYSE:SPY) was at $129.55. This level represents a short term major support for the market and it is very possible a multi day bounce will occur. In addition, sentiment is about as bearish as it has been in 2011. This also works as a solid contrarian indicator telling us a small bounce is on the horizon.
Key stocks are also hitting major support areas which tell Wall Street traders to also expect the markets to gain traction. If the major components of the Dow Jones Industrial Average are hitting support then the Dow Jones Industrial Average should be at support as well. Bank of America Corporation (NYSE:BAC), General Electric Company (NYSE:GE) and others are all at or very near major support levels.
Investors are heading for safety today as gold and silver are up sharply. The SPDR Gold Trust (ETF) (NYSE:GLD) is trading at $151.38, +1.16 (+0.77%) while the iShares Silver Trust (ETF) (NYSE:SLV) is trading at $36.18, +0.84 (+2.38%). With continued worries out of Greece, Portugal and other European countries and the United States struggling with jobs, investors are running for the safety of gold and silver.