Stock Market Update: Understanding The Charts
Yesterday, the markets surged higher hitting the key SPDR S&P 500 ETF (NYSEARCA:SPY) $129.50 level. This resistance level was solid and sure enough the markets are pausing today. Volume remains amazingly light in this new year. In addition, even with a strong Dollar the indexes have continued to hold near their multi month highs. This tells intelligent traders there is likely another surge higher coming. Once the $129.50 level is taken out, $132.00 - $133.00 is the next stop.
Natural gas is collapsing today. The United States Natural Gas Fund, LP (NYSEARCA:UNG) is trading at $5.95, -0.38 (-6.00%) . This massive drop is being fueled by over supply of natural gas. While long term the outlook for natural gas is promising as the cheap energy will attract users, short term the bottom is unknown.