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SML - Stock Market Directory

S&P 100 Trading

By: MarketVolume.com Team

Article Category: SML Index Trading

Known by its ticker symbol OEX, the S&P 100 is a subset of the S&P 500 and tracks the largest, most liquid stocks which have options contracts traded on them. The Standard & Poor's 100 Stock Index, measures large company U.S. stock market performance.

When interpreting the chart above, you need to remember that the most important factor is the relationship between Index Price and the Volume Moving Average (VMA). Here we see that the index has been trading down for almost 2 days, and at the end of those two days the VMA begins to increase substantially. This sharp increase signals that a bottom has been reached and that professional investors are buying. Once the VMA has peaked, that signals the safest point in which to make a trading decision, as it is here that the index has confirmed a new upwards trend.

Below is an example of how one of our exclusive institutional investors used this signal for the index to maximize profits by trading some of the derivatives of the S&P 100 index:

Details of the above trades, and the derivatives used for this index, can be found in the detailed overview and in the member's section of our site.