S&P 500 (SPX) Moves Up For the 2nd Day In A Row; Breaks Above 20 Day Average

S&P 500 Daily Price Recap

S&P 500 closed yesterday up 0.39% ($11.2); this denotes the 2nd day in a row an upward move has occurred. Out of the 8 instruments in the 8 major global equity indices asset class, S&P 500 ended up ranking 4th for the day in terms of price change relative to yesterday. The daily price chart of S&P 500 below illustrates.

S&P 500 Technical Analysis

First things first: S&P 500 crossed above its 20 day moving average yesterday. Volatility for S&P 500 has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed up. This may setup an interesting opportunity for traders looking to sell rallies in anticipation of the primary trend resuming. Or to view things another way, note that out of the past 10 days S&P 500’s price has gone up 7 them.

Overheard on Twitter

For laughs, fights, or genuinely useful information, let’s see what the most popular tweets pertaining to S&P 500 for the past day were:

  • From BennettWoodman:

    We would like more active managers to perform like the committee that manages the S&P 500. A basket made up of companies [e.g. $CHK $RIG $M $BBBY $CPRI] that were dropped from the S&P 500 $SPX over the past 3 years is down 47% this year or 5x the decline of $SPY

  • From frandsen_paul:

    @EdgeCGroup Well said for anyone willing to listen. Most won’t. Wonder is this how things felt in 1929 before the #stockmarket eventually dropped a total of 87% over the following 2.5 years? Does #historyrepeat? Similar drop would put #SPX S&P 500 in the 400s some 33% lower than 2009 bottom

  • From mdbergman36:

    #stocks – #tech ($XLK) rightly gets much credit for $SPX trying (kinda) to hang in there, but #HealthCare ($XLV) has outperformed tech – & all other sectors – over past three months & is only S&P 500 sector w/ >50% of constituents trading above 200 day moving average. (1/

For a longer news piece related to SPX that’s been generating discussion, check out:

Timing S&P 500 Swings Using the Bullish Percent Index – TrendInvestorPro.com

The Bullish Percent Index is a breadth indicator that quantifies double top breakouts and double bottom breakdowns, Point & Figure style….A Bullish Percent Index at 40% means 40% of stocks have double top breakouts and 60% have double bottom breakdowns.