S&P fills a gap from Friday
The US stocks are trading to new session highs. In the process the S&P index has filled the gap from Friday’s close.
Recall from yesterday, the S&P moved sharply lower and in the process dipped below its 50 day moving average (black line in the chart above).
Although the price has dipped below that 50 day moving average on around 10 separate occasions in 2021, there have only been two separate closes below that level (the last time in June). The price could not closed below that moving average yesterday.
Looking at the hourly chart, the low from Friday reached 4322. The high price today has extended to 4327.12. The gap has been filled. Above sets the 100 hour moving average at 4335.27. That moving average should give traders some cause for pause on a test today. Look for sellers against that level with stops on a break above.
A snapshot of the major indices currently shows:
- Dow industrial average up 580 points or 1.71% at 34541.88. The high price reached 34580.01
- S&P index up 64.47 points or 1.51% at 4323.10. It’s high price reached 4327.30.
- NASDAQ index up 206.4 points or 1.45% at 14481.40. It’s high price reached 14490.50.
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