Moving back toward its 50 day moving average in trading today
Since August 5, the S&P index has seen a number of moves higher and lower. The low price for that time, reached 2822.12 while the high price extended to 2943.31. The price just reached a new session high of 2933.64.
On the topside is the 50 day moving average at 2943.93. There has only been one day where the price closed above that moving average line since August 5. Down at the lows, the 200 day moving average at 2807.62 remains a downside target that would need to be busted in order to weaken the technical picture.
Between those 2 moving averages sits the 100 day moving average. The price action this month has seen moves above and below that moving average, indicative of a market that is trying to figure out which way to move next.
Today, the price gapped above the 100 day moving average at 2911.55 but remains below its 50 day moving average at 2943.31. Traders will likely continue to use the moving averages as bias and risk defining levels. As such, look for sellers against the 50 day moving average with stops above. If the price moves below the 100 day moving average, look for more momentum to the downside. It will take a move below the 2822 low for August and the 200 day moving average at 2807.62 in order to get sellers more in control.
