For the fourth time since the 'flash crash' in early May, the S&P 500 has tried and failed to rally significantly above its 50-day moving average. First, it was debt concerns out of Europe (5/13). Then it was the negative reversal following China's statement to let the yuan appreciate (6/21). Then it was weak earnings reports from the Financials and a weak Michigan Confidence report (7/16). Today, it was Bernanke's testimony that preceded the sell-off. Bulls had been hoping that strong earnings would be the catalyst to take the S&P 500 to the other side of its 50-day, but so far the bears (and Bernanke) are having none of it.
Thursday, July 22, 2010
"S&P 500 Turns Back at the 50-Day...Again" (SPY)
From Bespoke Investment Group: