200 day moving aveage

 As we can see below, the S&P 500 ETF’s trend has flattened out after declining since last May. Bulls argue this signals a trend change is taking place. However, bears push back and say that prices have chopped around this indicator for several months, with the market unable to decide on a direction.

Whether or not these indicators hold any statistical weight is hotly debated. As with most market analysis tools, everyone has their own interpretation of how they should and should not be used. 🤷

With that said, the bulls are back, pointing out that the market did reverse sharply after running into this indicator earlier in the week. As a result, some are using it as their “line in the sand” for the market. If prices stay above it, then that’s bullish. And if prices fall back below it, then it’s bearish. Or so they claim…