Sometimes, the obvious does need to be said. The S&P 500 cash index touched the big round number 2,000 yesterday. Here we are, in late summer, with very little happening in the world and few economic reports this week, so, of course, the media and blogosphere are filled with people discussing the number- there's nothing else to talk about. Many of the stories and quotes I read about this number today seemed to do a remarkable job of straddling the fence- saying that it is both important and not important, noteworthy and just a number. How should we think about it?
Is this how a super important level would look intraday?
In general, the importance of "round numbers" is a hotly debated topic among traders. Some traders are absolutely certain that round numbers are significant, but it is hard, even under extreme torture and duress, to make the data reveal