Episode 122: The DOW has broken below its 50 dma and the S&P500 is hovering just barely above its.
More importantly, the S&P500 is only 0.5% above its 100 dma. If it breaks the 100 dma and doesn’t quickly recover, that’s a huge red flag because the 100 dma has been an extremely dependable support level.
That being said, this is an INCREDIBLY resilient market and two factors are in its favor:
- Volume has been extremely tame during down days, so apparently institutional investors aren’t running for the exits.
- The 10 dma is comfortably above the 100 dma…last October when the index dropped nearly 10% it was precipitated by the 10 dma breaking below the 100 dma.
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