Bears remain in control
The S&P index rallied in early trading and in the process tested the 100 day MA at the 2023.17 level. The high came in at 2020.90...Close, but not quite.
Staying below the 100 day MA keeps the bears in control and as I type the price is down at the 2009.00 level - down about 0.18% on the day.
In December, the price of the S&P moved above and below the 100 day MA on two separate occasions as year end flow may have contributed. With the new year in it's second day, I wonder if those flows will continue. Yesterday, a new 3 month low was made and the 50% retracement was also broken, but buyers corrected the index higher. So the one thing we can say is there is a test going on between the buyers on dips and the seller on rallies. Staying below the 100 day MA gives the sellers the nod at the moment.
