On Tuesday the popular averages retreated to the downside, closing near their lows for the session. The US administration initiated the process of withdrawal from the World Health Organization, and asked Congress to put a cap on economic stimulus related to the pandemic. Meanwhile, concern remains about coranavirus surges in the US that are blocking some attempts to reopen the economy.
Tesla (TSLA +1.3%) once again attained all-time intraday and closing highs. It's closed up six successive trading sessions, during which it has gained 45%. Both bullish and bearish analysts have been raising price targets. I own Tesla shares.
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. During the middle weeks of March the SPY plunged amid heavy trading volume and a soaring volatility index (VIX). A low was hit on March 20.
Since then the SPY had been rallying until earlier in June. In late April it moved above its 50-day simple moving average. Its 200-day SMA was surpassed in late May. That latter SMA was retouched several times in early June, then the SPY bounced nicely above before becoming quiet during mid-month.
The week before last presented a ragged assortment of SPY price moves amid a downward trend. At that week's end it closed under its 200-day SMA and not far above its 50 day SMA. That latter SMA was touched last week on Monday before a jump back above the 200-day SMA with continuation during the remainder of that week and to start this week. Meanwhile, the 50-day MA is coming close to crossing above the 200-day MA. If it actually occurs, that could confirm a bull trend.
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