The S&P index looks to go into US/China right below 200 day MA, but the week gains (for S&P) was best in over 7 years

Technical Analysis

Author: Greg Michalowski | spx

Nasdaq also below MA levels..

The US stocks have rallied sharply this week off the November lows, and for the month it looks as if the major indices will close in the black.   

However, both the S&P and the Nasdaq look as if they will close below (or right near) their daily moving averages.

Looking at the S&P daily chart above, the 200 day MA comes in at 2761.87. The high price has reached just below that level at 2760.88.  For the month of November, the high price stalled right below the 100 day MA (blue line in chart above). That started the run lower.  PS. the 50 day MA is on track to close below the 200 day MA next week. That is the dreaded "death cross" which is supposed to be a bearish technical indicator (if you believe those things).  

For the tech heavy Nasdaq, the price rise off a lower bottom last week (relative to the S&P) is coming up well short of the 50 day MA (white line) at 7462 and the 200 day MA at 7675.  The current price is at 7315.11 currently.  That keeps the bears in control off that chart. A move above those MAs will be needed to tilt the bias back to the bullish side next week.  PS. Note the 50 day MA has crossed below the 200 day MA this week. 

Although the daily charts are keeping a bearish tilt, much depends on the G20 (or so it seems).  Come Monday, the price could gap above the MA levels or gap lower and restart another run into December.  Time will tell. 

For the day, the final numbers are showing
  • The S&P index rose 21.29 points or 0.78% at 2759.08.  The high for the day reached 2760.88. The low extended to 2732.76
  • The NASDAQ index rose 57.45 points or 0.79% at 7330.53.  The high reached 7332.79. The low extended to 7255.676.
  • The Dow industrial average rose 171.27 points or 0.68% at 25510.17.  The high reach 25549.71. The low extended to 25250.97

For the week, the stocks had the best week since November 2016 . The final numbers show:
  • The S&P index rose 4.82%
  • The NASDAQ index rose 5.64%
  • The Dow industrial average rose 5.12%

For the month, the major indices were able to claw back losses and end the month positive.
  • The S&P index rose 1.75%
  • The NASDAQ index rose 0.34%
  • The Dow industrial average rose 1.63%
Microsoft today surpassed Apple in market capitalization. It is the largest capitalized company in the world.  
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