Approaches key 100 day MA
The S&P index just extended to a new session high at 2696.21. That is up about 24 points or 0.87%. The low today was down at 2671.92.
The move higher has taken the price to the highest level since April 19th, and also moves the price closer to the key 100 day MA at 2705.61.
The price of the S&P has only traded, and closed above the 100 day MA on two days since March 22 (see blue line).
At the lows over the last month or so, the 200 day MA had only one day when the price closed below it (5 days of trading below, but only one close)
So since March 22, there have only been 3 days when the price did not close above the 200 day MA and below the 100 day MA.
PS. The high for the year was at 2872, reached back on January 22nd. We are quite a ways away from that target.
Going forward, for the bulls, the breaking of that 100 day MA will be key. The earnings for the quarter seemed to have been good enough to get the ball rolling again, but geopolitical and concerns about the future growth prospects, has market participants more cautious in 2018. The market reaction was relatively muted. This ain’t no 2017.
As a result, you have to expect some slowing of the momentum ahead out of respect.
Traders can hedge or take off some positions, but that 100 day MA should be respected on the test. If there is a momentum break, the hedges can be taken off, as there should be a bigger run higher.