S&P 500 26% Below 200-Day Moving Average
Earlier today, the S&P 500 was trading 26% below its 200-day moving average. As shown in the historical 200-day moving average spread chart below, this has been an extremely rare occurrence in the S&P 500's history. The index got below 25% in July 2002, September 1974, May 1940, and multiple times in the late 1920s and the 1930s (not even the '87 crash saw the spread this low). As the chart highlights, spreads don't stay down at these levels for long, which means that while we might not go straight up from here, the sharp declines that we have been seeing are due to take a breather for at least a little bit.
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I wonder what the biggest % up day is in the S&P 500. I bet we see a 10% day soon.
Posted by: hungryneck | October 08, 2008 at 04:35 PM
Look at the left side for a reference.
Posted by: Wayne | October 08, 2008 at 08:54 PM
How do you determine when the s&p 500 is 5% above it's 200 day moving average?
Posted by: w phillips | May 06, 2009 at 06:19 PM