Watch This Key Market Level: The Pros Are
The markets surged higher today for the second day in a row. The S&P 500 hit a new all time high before noon. Many investors are wondering if it is time to buy the markets again, prior to another leg higher. The pros are watching one thing and one thing only. The closing price on the S&P 500.
Does the S&P 500 close at a new all time high or does it close below the former all time high? This is all that matters and exactly what the pro traders on Wall Street are following. If it closes above 1,849.44 (the former all time high from December 31st, 2013), a bullish case can be made for a move higher in the markets. If it closes below that high, caution should still be used as the markets could decline in the near future. This and only this is what institutional traders and pro investors are watching.