S&P 500 Weekly Support Between 1,065 and 1,087
If you examine the S&P 500’s weekly chart, based on market action since January 2009, there are some potential pockets of support near the following levels: 1,087, 1,083, 1,065, 1,040, 967, and 940. While there were few positives today on the fundamental and technical fronts, the S&P 500 did manage to close above its 50-day moving average (now at 1,087). There are three instances below where the 50-day acted as resistance (red arrows). Other recent market interactions with the 50-day are denoted with the blue and orange arrows. The expression goes “what once was resistance, now becomes support”. However, the expression should use the phrase “potential support”. Regardless of the semantics, there is some rationale for a possible bounce at the 50-day. We have posted some additional comments for CCM clients here.
