89 Week Moving Average In The S&P
One of my readers was kind enough to share with me the 89 week moving average in the S&P so I'm posting the above chart so you can see it as well.
Above is a weekly chart of the S&P 500 along with the 89 week moving average. As you can see, since 2004 all of the pullbacks have been contained by this moving average. About a week ago the S&P touched the average and rallied. My opinion is that the trend is up until the S&P posts several weekly closes BELOW this average, until then I think we have to remain BULLISH!
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2 comments:
Take a look at the 90 DMA and you will see that almost all corrections have bounced off it before making the second leg down. We bounced off Friday. Don't know whether we just test the bottom or are now setup for another leg down or not. Another interesting fact is that every correction so far has seen at least two legs down in the NDX. The lone exception was Feb. 07 were the market just crashed in one day. But even that correction tested the low. Even if this is like spring 07 the NDX should at least test the lows. Then again we may be setting up for the second leg down. It does seem like everyone and their cousin is now bullish. When everyone is thinking the same thing then no one is thinking.
Nice work Gary..
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