There are some interesting technicals to talk about on the SPX today. It was a light trading day so why not?
First off, in the morning, the SPX broke its 9 & 10 day moving averages (white and purple lines) on the daily chart. Secondly, it violated its uptrend line (in red). But the story has a happy ending because by the end of the day the market rallied and it corrected all of those violations.
Also, so you will be the most interesting person at your weekend cocktail party, the SPX and SPY put in a golden cross. What’s that you ask? Its when the 50 day moving averages crosses through and above the 200 day moving average. You can see all of this in the chart below.
Does it mean much? To me not that much. Golden crosses can take months to validate and sometimes its just irrelevant. Technicians with a keyboards will be all over twitter and Stocktwits with this morsel tomorrow. Makes them feel smart. It is a bullish signal though.
The takeaway though is that the bears had a shot to take away the punch bowel today and they couldn’t. The bulls are still in charge and they bought the dip.
I added LAD short today. Looking for low 70’s
See you in the morning.