hort-term traders can't stop talking about 1,950, which is considered a critical level for the S&P 500. And on Monday, the market is rising to within spitting distance of that widely watched marker.
The level has frequently served as a turning point for the S&P, increasing its importance. It is also roughly the S&P 500's current 50-day moving average.
A 50-day moving average is merely an average of the prior 50 closing prices, but it can serve as a useful milepost to show about where stocks have been recently. In addition, the mere fact that it's widely watched lends this average added import. On Monday, the 50-day moving average falls at 1,951.62.
And there's a third, more concrete reason why 1,950 is important for traders: The options market has piled on that price. Among options expiring on Friday and at the end of February, call options with a striking price of 1,950 have been the most widely held contracts trading near the money. They are also seeing the most volume of any soon-to-expire call options contracts on Monday.
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