On Friday the popular averages closed narrowly mixed. This as we move into the three-day weekend ending with Memorial Day. It normally kicks off summertime in America, but this year many of us will be remaining quarantined indoors due to the pandemic. Nevertheless, please salute with me all departed American war participants, including my friends who lost their lives while we were serving together in Vietnam. May accumulated wisdom help us to avoid such tragedies in the future.
Above is my three-month chart for the S&P 500 ETF (SPY). On February 19 the SPY attained all-time intraday and closing highs. Then came the coronavirus inspired collapse beneath the 50-day simple moving average on February 24 with continuation leading to penetration of the 200-day SMA.
During the first week of March the SPY gyrated dramatically above and below its 200-day SMA, before resuming the steep plunge amid heavy trading volume and a soaring volatility index (VIX). A strong three-day rally arose during late March, before a stall. That was followed by resumption of the rally during early April.
The SPY price was weaving for much of April beneath its 50-day SMA before running into resistance at that level. It poked its head above on April 24, then got skittish when in sight of its 200-day SMA.
Early this month the 50-day SMA proved supportive. The SPY was making another dash toward its 200-day SMA, but was turned back on May 12 amid pandemic concerns. On May 14 the SPY bounced upward after again finding support at its 50-day SMA, then kept going the next day. The strong continuation of the rally on Monday was seemingly encouraging, but the SPY found resistance at its 200-day SMA. That resistance remained in force throughout the rest of this week.
You appear to be blocking the helpful ads on our website. If you wish this website to continue, please allow ads for this website. That can be done for this website, while still blocking ads for other websites. Thank you for your support.