« Chart in Focus: (False) Break of 20dMA on S&P-500 (2) »

The 20dMA on the S&P-500 was under the spotlight in our most recent 'chart in focus' segment. The index had fallen below its 20dMA last Monday.

The move had potentially confirmed the initial sell signals that had shown up in the preceding week or two. Typically, technicians like to wait for at least a second close before making a market call. The index did close below its 20dMA on Tuesday, but only marginally (the Dow actualy closed above its 20dMA on Tuesday).

By Wednesday, SPX had closed above the 20dMA and the potential confirmation from Monday was all but history. Thursday's closing, the second day in a row above the 20dMA, has put paid to the issue and until/unless there is another close below the 20dMA (and, as mentioned in the commentary pieces in our Members Area, a negative centerline crossover on RSI), the minor and intermediate trends will continue to be seen as bullish.

A new chart will be the feature of the 'chart in focus' starting over the weekend or early next week.