The Ground Round 1300 Number

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Traders often discuss the psychological significance of round numbers on a given chart, although the reality is that they are usually not as dispositive of a bullish or bearish outcome as they may seem. After this morning’s gap lower, we are churning a bit right at the 1300 level on the S&P 500. While I am eyeing 1294 on the downside (lows from 02/24) as a major test of mettle for bulls and bears, the fact that the 50 day simple moving average on the S&P also also coincides with the big, round 1300 number is likely adding psychological weight to traders’ minds today, and the bulls are trying awfully hard to hold the line here, yet again.