The S&P 500 Index is trying to hold its 200 DMA (which is just above 3050). To be honest, the 200 DMA didn’t provide much support in last week’s late-week decline…and didn’t provide a lot of resistance on the days the market has bounced this week. However, since we’re sitting very close to that line mid-morning today…and it HAS provided important support/resistance in the past, we’re still going to watch it closely for the rest of today.
Whether it breaks more meaningfully below that line…or bounces off it…could be important for how the rest of today goes………Again, given that this moving average hasn’t been as important as usual recently, we think the recent closing lows/highs are the more important levels to be watching over the next several trading days…but we’ll still be watching the 200 DMA as we move through the day today.
BTW, those closing low/high levels are: Friday’s closing low of 2954…and yesterday’s closing high was 3130.
Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
Founder, The Maley Report
275 Grove St. Suite 2-400
Newton, MA 02466
Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.