S&P 500 Falls Below 50-Day, Approaching Uptrend Support

After a 4.5% decline in less than a week, the S&P 500 is now trading back below its 50-day moving average, putting the bulls on the defensive once again. While the break below the 50-day is disconcerting, we would note that there is some support right below it. How the market acts at these levels will play an important role in determining sentiment as we head into Inauguration Day.

click to enlarge

Comments

[investor88:]

On the balance of facts available, it may be better to avoid stocks now than assume a smart rebound off the 50d moving average like business as usual in a bull market.

If there is a sustained move above 50d moving average, then we can re-assess.

Jan 12 06:14 PM