S&P index tries to extend above 100 day MA

Technical Analysis

Author: Greg Michalowski | sp

The 100 day MA is at 2710.95. The 200 day MA is at 2741.51

The S&P index is trading up about 9 points or 0.33% at 2713. That has the price above the 100 day MA at 2710.95. and near the 61.8% of the move down from the September high at 2713.88. The high today did reach 2716.66 but stalled.

The 100 day MA is at 2710.95. The 200 day MA is at 2741.51
A close above the level would be the first close above since October 10th. The price has gotten close to the level on a few occcasions in October, November and a lesser extend in December. This is the best shot at closing above.   

On a close above the 200 day MA looms not far away at 2741.51. 

It is tough to move above a MA on the first test of a key MA in nearly 4 months -especially after a 15.7% run from the the December 26 low (that is not that long ago).  That is what makes today's test important.  Traders can lean, take some off the table, look for a correction to reload. If the price goes higher, they can get back in.  That's what makes these technical levels so important - and hard to crack.  

PS the Nasdaq is also trading above and below its 100 day MA at 7281.77. It trades at that level as I type.

The Nasdaq index is testing its 100 day MA
Corrections can sneak up on you.  Key technical levels tend to give traders cause for pause. The 100 day MA on both the S&P and Nasdaq are key levels.   
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