The popular averages closed slightly the downside on Friday as July options expired. Significant macroeconomic reports were nonexistent. The prices of crude oil and gold rose.
Above is my 3-month chart of the S&P 500 exchange traded fund (SPY). Its 200-day moving average essentially provided support several times this year. During the intermediate periods the SPY’s 50-day moving average was overcome multiple times before the price was thrust back below.
The successful tests of the SPY’s 200-day MA indicated it was going through more of a grinding correction than a collapse. The strong upthrust from it on May 4 was encouraging enough to turn my weekly outlook arrow green. The jump above its 50-day MA on May 9 repainted the other arrows. The dip on May 29 held above the 50-day MA, then the uptrend resumed.
The slips in June seem to have been due to trade war fears. The upward trend for much of July appears to have ignored those concerns.
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