Technical Talk: S&P 500 in critical area
As seen in the chart below, the S&P 500 Index (1,187) has been flirting with its 50-day moving average (1,177) over the past few days. The two-week consolidation holds the key to the market’s next move. “The 1,175 level is a critical area for the Index as it will either gain support here and work higher or it will break the 50-day line and the recent corrective wave of the last few weeks will continue to play out. At this point we would have a solid risk management plan in place (i.e. stops) in case the market breaks lower,” commented Kevin Lane of Fusion IQ.
A useful discussion of the key moving average levels also comes from Brian Shannon of Alphatrends.net.
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