SPX S&P 500 Daily Chart; Moving Averages Support/Resistance

The SPX collapsed down through the ribbon of moving average support lines. In late January, price was at nosebleed levels above the moving averages requiring a mean reversion lower and when it happened it was jaw-dropping. On Friday, the drama was around the 150-day MA at 2581 and this was not even reported by the business media. this battle continued until price lost the 150 which opened the door to test the 200-day MA at 2539 another important and key level.

However, the 12-month MA at 2532 was actually the most important support level and that is exactly where price bounced. The buy programs then went crazy launching price into the weekend. The SPX rocket launched up to the 100-day MA at 2639 and whack, price hits its head on the ceiling and crumbles lower remaining between the 100 and 150. The robots are in full control as evidenced by price pivoting at key moving averages. Use the moving averages as a guide for the week ahead.

The RSI and stochastic are oversold agreeable to a bounce in price. With the lower low in price, the RSI, histogram, and stochastics are positively diverged which creates the Friday intraday pop. The MACD line and money flow are weak and bleak wanting another low in price in this daily time frame, after a bounce, before the firm green light could be given for the upside relief rally. The markets are very emotional and news-driven at the moment, however, and still need a few days to settle. A key factor is if the short-volatility products stabilize. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.