Crunch time has arrived. Earnings hit hard and fast in coming sessions, while the Presidential Election is in exactly one week.
A few things stand out on the S&P 500 as we enter this key time.
First, the potential kicker we cited last week was never confirmed. Instead of bouncing strongly at 3425, SPX lingered above it before knifing through that key level on Monday.
Something else happened today: The index seemed to hit resistance at its 50-day simple moving average (SMA) at 3408.
This chart features our custom script MA Speed with the 50-day SMA. It illustrates how the line has been losing its upward pace since early September. It’s now barely rising and is at risk of turning negative.
Next, SPX might be in a descending channel. It made a low of 3209 on September 24 and a lower high of 3550 on October 12. If this pattern continues amid the current uncertainty, it could bring a retest of 3200 or lower. That would also be near the 200-day simple moving average (SMA) -- last tested on June 29.
Finally, the 5-day SMA has crossed below the 20-day SMA. That can be a short-term bearish signal.
For now, the 50-day SMA appears to the key line in the sand. Failure to reclaim that level could demoralize buyers. Then the downward channel could be in play.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
A few things stand out on the S&P 500 as we enter this key time.
First, the potential kicker we cited last week was never confirmed. Instead of bouncing strongly at 3425, SPX lingered above it before knifing through that key level on Monday.
Something else happened today: The index seemed to hit resistance at its 50-day simple moving average (SMA) at 3408.
This chart features our custom script MA Speed with the 50-day SMA. It illustrates how the line has been losing its upward pace since early September. It’s now barely rising and is at risk of turning negative.
Next, SPX might be in a descending channel. It made a low of 3209 on September 24 and a lower high of 3550 on October 12. If this pattern continues amid the current uncertainty, it could bring a retest of 3200 or lower. That would also be near the 200-day simple moving average (SMA) -- last tested on June 29.
Finally, the 5-day SMA has crossed below the 20-day SMA. That can be a short-term bearish signal.
For now, the 50-day SMA appears to the key line in the sand. Failure to reclaim that level could demoralize buyers. Then the downward channel could be in play.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
