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SPY Closes Below 20 Day Moving Averages

|Includes: SPDR S&P 500 Trust ETF (SPY)

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The SPY closed Monday below both the 20 day SMA and EMA. The 20 day moving average is a good indicator of short term trends. In addition, if you look at the chart below, you will see that the 20 day indicator has been a great tool for identifying trends the past year. That's not to say it will remain a great indicator at all times for entry/exit points as it will typically generate too many signals for longer term investors. However, until this market, and investors, stop feeling skittish I'll continue to watch the 20 day moving average as a primary indicator of the short term trend.