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S&P 500 Index (SPX) and S&P Deposit Receipts (NYSE: SPY) Stall at Resistance

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

July 16, 2010

Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (NYSE: SPY) have reached their respective 50-day moving averages. But they accomplished that three days ago.

Since reaching this widely followed short term indicator, the SPX and SPY have hardly moved. There has been a lot of intra-day movement, but not above the 50-day average at the close for the last three days.

Not only is the 50-day average a problem, but both the SPX and SPY remain below their respective 200-day moving averages too. The 200-day average is often used to identify bull and bear markets.

Plus, the 50-day average is below the 200-day average. This is a bearish indicator by any one’s measurement.

Lastly both the SPX and SPY remain below a declining trend resistance line. This line is created by drawing a straight line through the rally highs since April.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in the S&P 500 SPDRs.



Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy has a position in the S&P 500 SPDRs.