Looking a bit long in the teeth, or..
June 14, 2009- Market Summary
Investors saw higher consumer confidence numbers this month, but they were still lower than analysts were expecting. Rising commodity prices, specifically copper (up about 4% on the week) and oil (up almost $3.60), left investors wondering whether a short-term top is being reached. (For further reading, check out An Overview Of Commodities Trading)
Previous reports, have noted the Nasdaq has already seen the 50-day simple moving average cross above the 200-day average. As you can see from the charts below, this week the S&P 500’s 50-day average is creeping closer to performing the same cross. The S&P 500 itself has been using the 200-day exponential moving average as a resistance level all through June, only slightly breaking above it on Thursday June 11 and Friday June 12. Although this move is marginal, this is the first two consecutive days to cross the exponential average since May 16, 2008. It will take more than just a couple sessions, but if the major averages break these moving averages and this move is followed by a 50-day cross there could be further upside potential. (To learn more about levels of resistance, be sure to check out the Support And Resistance section of our Technical Analysis Tutorial.)