The S&P 500 is flirting with its 200 day moving average. As of today, the 200 day sits at 2072.58 and at the time of this post, the S&P 500 is at 2079. I wanted to alert my readers about the possible fair value and moving average divergence. If this happens - and this could be a reality given the jobs report tomorrow, August 7th - don't panic right away. The S&P 500 has crossed below its 200 day moving average multiple times in the past, without falling further below in the following days. It is important to note when the S&P 500 crosses below the 200 day, and it is equally imperative to stay attentive during the following days. If the S&P 500 is unable to break above the 200 day moving average within 6 days, then panic. I think that if the S&P is unable to stay above its 200 day moving average, there will be a lot more downside. I think the S&P 500 will not see any support until the 2030s, which is shown on the superimposed trend line on the picture below.
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