Sunday, April 13, 2014

S&P 500 index (SPX) could test the 200 day MA next


$SPX daily 

For S&P, since it broke the 50 day MA (yellow line on the daily chart), it has a good chance to test the 1738 area near the 50 week MA (i.e., 200 day MA currently at 1761, 3% down from last Friday’s 1816 close). We need to see how it reacts once it tests the 200 day MA area. Whether it is going to seriously break down there as it did in 2010 and 2011 remains to be seen.


$SPX weekly



As shown on the weekly chart, once the 200 day MA is broken, then the next support zone lies in the 1585/1485 range (i.e., 38.2% and 50% retracements of the Oct 2011/Apr 2014 rise).



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