Monday, June 1, 2009

S&P 500 Breaks Above 200-Day Moving Average

I was just about to post on this but Bespoke beat me to it. The 200 day is not magical or mystical but it is worth noting. When I was a pup an old-timer put it succinctly: "It's the point where all the people who've been thinking "I'll sell when I get even" get even."
From Bespoke Investment Group:

The S&P 500 has broken above its 200-day moving average this morning for the first time in 524 calendar days (359 trading days). Below is a price chart of the S&P 500 as well as a chart of its 200-day moving average spread. If the index can close above its 200-day today, technicians will treat this as a positive for the market going forward. We recently did a B.I.G. Tips report that highlights the performance of the index going forward when it trades above its 200-day after long periods below it. Subscribe to Bespoke Premium to view....