Wednesday, May 4, 2011

S&P 500 Continues to Rest at Primary Support

As mentioned of late, the 10 and/or 13 day moving averages have been the primary supports since the run up from late August 2010.  Once again today we see this as the S&P 500 has been sitting on or near the 13 day moving average (1344ish) much of the day.  If the normal pattern continues, this is more or less the bottom of the move down.  If there is a change in pattern, we'll see these levels broken and then a move further downward.  That would be a key turning point because it would be the first time this has happened since August 2010 that did not have to do with a geopolitical event (i.e. Ireland - November 2010, Japan - March 2011).

There is a yawning gap asking to be filled in the mid 1310s from about three weeks ago, but we'll know if it's too soon for that to happen in a few days.

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