S&P Closes Above 50 DMA For 1st Time Since Early September
Yesterday, the S&P closed above its 50 day moving average for the 1st time since early September. Prior to yesterday’s close, it had closed below its 50 DMA for 72 consecutive trading sessions.
This suggests a convincing level of technical strength in stocks, greater than at any time since the financial collapse began in late September.
The question now is whether the 50 DMA will act as resistance or if the market can power through it and continue to move higher. My sense is we can go higher in the short term. This is encouraging market action.