The S&P 500 moved above the 200-day moving average.
- The S&P 500 moved decisively above the 200-day moving average last week and potential resistance is now the 2800.18 level.
- Potential support now becomes the 200-day moving average at 2744.88.
- The rally last week came with only average volume, so we could see a pullback to support soon.
- The RSI is almost overbought which is another sign we could see a pullback to support soon.
- A small pullback down to the 200-day moving average would be healthy for the index. Markets are extended and close to overbought which makes it hard for more upside at this time.
John N. Lilly III, AAMS
Portfolio Manager, RJFS
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum Oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision.