And So, the SMA 200 Test is On

Who is surprised that the stock market is bouncing at or around its various 200 day moving averages? I didn’t think so. This test will play heavily into the near future.

The classic interpretation is that a healthy test (and re-test) of the rising SMA 200 is in process. If the test is successful, SPX need not and probably will not test the 200 again. Done, bulls back in business.

If the bounce from the 200 fails and SPX goes for the gap around 2460, a whole host of other potentials open up, both near and longer-term. Both bearish and later, potentially mega bullish. But in that case time and price levels would be beyond the scope of this daily chart. So for now let’s sit back, relax (unless you’re day trading of course) and wait for short-term resolutions.

spx

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