Wednesday, October 27, 2010

The importance of MA(20)

A couple of days I commented that I would be staying bullish on the overall markets until MA(20) is breaking on the S&P. With the market approaching that level, I thought I would just do a quick post on the importance of this level. The best way to illustrate the importance of this level would be to just show the S&P chart from Feb to May. Here it is.
 

And this is where we stand right now. The last time we were were below this level was at 1080. As of today, MA(20) stands at 1168.


Take care and good luck!

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