Uh-oh. After closing just barely above its 50-day moving average this past Thursday, the S&P 500 sold off sharply on Friday. Had the index made a significant move past its 50-day on the positive side, technicians would have considered it a nice break through resistance.
Unfortunately for bulls, the index failed to make a meaningful break to the upside, and it now looks as if it has failed three times at the 50-day since the correction began back in April. After the last two failed attempts at the 50-day, the S&P went on to make new correction lows pretty quickly. Friday's move lower no doubt has traders on edge once again. (click to enlarge)