S&P500 Flirting With Key Support

The S&P500 moved through its 200-day moving average this morning and has bounced almost 20 points back above the low for a day back through the 200-day .   Since early 2016, the 200-day has acted as steel support for stocks, and a trampoline to launch strong reversal rallies.

We count only one close below the 200-day since early 2016, in early April.

Charlie B. recently noted the S&P500 ETF has closed 571 straight days above its 200-day moving average, an all-time record.

S&P_3

 

S&P_1

S&P_2

The level to watch today is 2765.91.   

 

 

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2 Responses to S&P500 Flirting With Key Support

  1. Robert Enserro says:

    Gary, what does your gut say? (; I hope you are very well. Rob

    Sent from my iPad

    • macromon says:

      Hey Rob,

      Great to hear from you. Lower for risk with 2770 S&P500 stop for shorts. 2730
      a big number and has to hold.

      Armageddon if bid-to-cover on any Treasury auction falls below 2.0, and or big break of 7,1 on RMB, or China reserves fall below $2.6 trillion. Decent 30-year today at 2.42 btc, but not great. Ugly 10-year yesterday at 2,39 btc, third lowest since Jan 2017.

      The Treasury will get funded, but at expense of fragile five EMs.

      Also watch to see of Draghi gets cold feet.

      Kudlow & Co. going to be out with pom-poms and announcements to squeeze the shorts, but they have painted themselves into a corner.

      Best to Nikos,

      Cheers,

      G

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