The S&P 500 is currently trading above its 50-day moving average and below its 200-day moving average. The recent rally has also been one of the most impactful during the current bear market in regards to where the index is trading relative to both its 50- and 200-days. As shown in the second chart below, the S&P 500 is now 7.85% above its 50-day moving average, which is the most overbought reading for the spread since the bear market began. The index has also now traded above its 50-day for 11 days in a row, which is the longest streak since the 33-day period that ended last May. And finally, the S&P 500's 200-day moving average spread is the highest it has been since the market really tanked last September. If the index can eventually trade above both its 50-day and 200-day, it will be a big positive for technicians looking for signs that the bear is officially over.
Thx Paul,just about 60days until we hit the 200
Posted by: dj | April 16, 2009 at 07:51 PM