S&P 500 Holds 200-Day Moving Average Intraday

For the second time in two days, the S&P 500 has tested and bounced off of its 200-day moving average. Given the fact that support tends to get weaker the more often it's tested (just like resistance gets weaker with each attempt to break through it), the bulls need a longer rally than the one we had yesterday if they have any hope of the index holding above current levels.

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Comments

[whidbey:]

Right on, I am betting on a little over sold rally later this summer, then a drum beat from hell as we see the earnings erode and the multiple come in towards 10-14. It will end badly for the market and investors, unless of course one is short.

Jul 07 06:45 PM

[markfl:]

I think if Aug. monthly employment again disappoints S&P could easily sink below 900.
May 11: "The broad S&P 500 earlier fell below the key support level of 900 for the first time in a week but is up 33.3 percent from March lows in a rally spurred by optimism that the financial sector and economy are showing signs of stabilization."
uk.reuters.com/article...

Jul 08 07:36 AM