Lately, I’ve been noting the importance of the 200-day moving average (MA). The first chart I want to look at this week shows that the S&P 500 failed to break above that MA. I’ve also highlighted another section of the chart that is a good illustration of how important the 200-day MA can be. During that period, the index reached its top in October and began selling off. The initial declined when the price broke below the 200-day MA. For almost eight weeks, the S&P 500 remained within a few percentage points of this level. Then, in early December, the… Read More
Lately, I’ve been noting the importance of the 200-day moving average (MA). The first chart I want to look at this week shows that the S&P 500 failed to break above that MA. I’ve also highlighted another section of the chart that is a good illustration of how important the 200-day MA can be. During that period, the index reached its top in October and began selling off. The initial declined when the price broke below the 200-day MA. For almost eight weeks, the S&P 500 remained within a few percentage points of this level. Then, in early December, the index broke sharply below its moving average, sparking a 15% tumble that reached a low of 2,351 on December 24. In the six weeks since those lows, the S&P 500 staged a steady rally back toward its 200-day MA (spurring an increase of bullish opinions)… but it stalled out last week after failing to break through the MA for two days. —Recommended Link— Thousands Of Americans Have Joined A Revolutionary New Marijuana Profit-Sharing Plan. Their payouts have been breathtaking. The company behind this plan sends out profit-sharing checks like clockwork, and you could quickly find… Read More