A reader requested a look at the S&P 500 index on multiple timeframes:
The daily chart suffered some serious technical damage last week. The new high failed to hold and as the index rolled over, the decline accelerated, taking it through the December high support level, and back down to the area of this year’s January highs and the 50 day moving average. Volume was about 13% more than the 50 day average of volume, and money flow was clearly to the downside. The ability to hold above this most recent support at 2062 will be a factor in determining if a test of the 200 day moving average is in the short-term future.
The weekly chart should calm some frazzled nerves, and puts the one week pullback in perspective. The trend on this timeframe remains intact and continues higher. The MacD and other price momentum indicators have been in bearish divergence to the index, and at some point that will correct, but they have been out of sync for a while and have in past.
There is a slight glitch in the long-term picture, however, that can be seen on the monthly chart. The uptrend, again, is clearly secure, but the MacD indicator has made a slight bearish crossover for the first time since 2011. At this point, it simply represents a slight decrease in momentum, but is something of note.