Chart of the Week: S&P500 Index plus 200 Day MA

The S&P500 managed to bounce off its support line at the 200-day moving average several times over the past few days. Each bounce off of support weakens it, however, as the Bulls expend a lots of energy trying to stay above the green line.

S&P500 Index plus 200 Day MA (6 mos)spx_200_day
Source: Redwood Technimentals Research Group

The Rallies have had modest positive internal skews (up/down volume ratio and advance/decline ratio); How ever, we would be more encouraged if they were on heavier volume. Technimental’s Kevin Lane observes: “Volume equates to confidence and conviction and low totals suggest neither.”

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Quote of the Day:
“The soul is dyed the color of its thoughts. Think only on those things that are in line with your principles and can bear the light of day. The content of your character is your choice. Day by day, what you do is who you become.”
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