Posted in
Technical Analysis
By: Tom Gentile
on February 25th, 2022
The Stock Market has Created a Bottom for Now
Seeing the market go down due to the threat of Russia invading Ukraine, even though investors don’t like it, at least can understand it
What is tough to understand is now that Russia is attacking the market is ramping higher the past two trading days.
Technical Chart on SPY
SPY is trading out of correction territory as of the time of this writing. A correction is where a security is 10% or more off its recent highs. SPY was in correction territory on the open of Thursday and then rallied strongly out of that.
It is carrying over its bullish run today.
Simple Moving Average View on the Stock Market
From the perspective of using the Simple Moving Averages (SMA) one can make a case for equities still being in a bullish mode/trend as the shorter-term 50-day SMA is above the 200-day SMA), even though it is sloping down a bit).
200-day SMA resistance
Though I am encouraged to see this bullishness taking place, even if it continues next week, my next level of concern for where resistance may kick in is at that 200-day SMA, currently around the $445 price/
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