S&P500 Hits Its 200 Day Moving Average

Thursday, June 16th, 2011

As you can see in the chart below the S&P500 has been in a correction that started on May 2 2011. Today it hit its 200 day simple moving average (the big green line). A 200 day moving average can act as either a strong support for a stock, if the stock is above it, or a strong resistance for the stock, if the stock is below it.

Taking into account the strength of the 200 day moving average we may see the S&P bounce up from this line in the next few trading days. If it does go up it will be interesting to see if this is a turning point for the S&P or if its just another temporary pull back in an otherwise continuing downward trend. You can click on the chart if you want to enlarge it.

About Me

Welcome to my blog. My name is Justin Paone and this is where I express my thoughts, discoveries,views and the day-to-day happenings in my life.

Want to subscribe?

 Subscribe in a reader Or, subscribe via email:
Enter your email address:  
Find entries :