Checking in on the 200 Day Moving Average

• Posted by Greg Harmon
• on April 5th, 2013

I have been very bullish over the last 6 months but telling subscribers the last few weeks that although the trend remains higher, there are measures of caution that suggest to tighten stops or protect. One of those measures is the Percentage of stocks over their 200 Day Simple Moving Average (SPXA200R). The chart below shows this over time with the backdrop of the S&P 500

($SPX). Notice that the data series has reached the trend resistance. not extreme, but high. It does not mean it will correct lower but it does create another point to reflect on as the markets are at new highs. Markets are starting lower Friday morning as I write this but holding at not so bad levels. Using this series as a guide there may need to be a lot more to get it down under 50%.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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