The Broad Market Moving Averages Are Doing Their Jobs

By | April 16, 2018

Moving averages often supply technical support and resistance. They have been doing just that on the charts of the broader market moving averages.

The S&P 500 Index, the Dow Jones Industrial Average, and the NASDAQ Composite Index bounced off their lows this month, located at or just above their respective 200 day moving averages.

Now they have returned to their 50 day moving averages, and it would be expected that those levels will act as temporary resistance.

Recapturing the 50 day average is a first step in returning to the primary uptrend.

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