S&P finds buyers at the 200 day MA and reverses the trend today.
It might be one of the worst weeks since 2011, but it could have been worse.
- The S&P rallied from a low of 2532.69 to the close at 2619.55. The high reached 2638.67. The low to the high was 106 points. Big.
- The Nasdaq rallied from a low of 6630.67 to the close at 6892. The high reached 6917.01. That is a 287 point turn around
- The Dow rallied from a low of 23360.29 to the close at 24190. The high reached 24382.14. That is change of 1022 from the low to the high.
What was the catalyst for the turn around?
A buyer in the S&P near the 200 day MA.
That MA came in at 2539.26. The low for the day reached 2532.69 before rocketing back higher. Kick save and a beauty.
Is the selling all over?
Well, we know the buying came in near the 200 day MA. The rally to the upside into to close moved right up to the 100 day MA at 2639.50. The high today reached 2638.67.
So is the market out of the woods? Not yet folks. Right now the buyer and sellers are dancing between the 200 day MA below and the 100 day MA above. We will see what next week brings.
For the week,
- The S&P is down -5.16%
- The Nasdaq is down -5.06%
- The Dow is down -5.21%
For the YTD:
- The S&P is down -2.02%
- The Nasdaq is down -0.42%
- The Dow is down -2.14%.
Things could have been worse. We will see if the 100 day MA is busted next week, or does the bounce back rally, head back down and retest the 200 day MA. Let the price action tell you the story.