The popular averages closed narrowly mixed on Friday. Pundits expressed concern about the lack of agreement among Republican members of the House of Representatives regarding their party’s bill to replace Obamacare. Durable goods orders increased in February. Markit outlook surveys pointed toward continued growth in manufacturing and services. Meanwhile the prices of crude oil and gold rose on Friday.
Above is my 3-month chart of the S&P 500 exchange traded fund (SPY). The post-election up-trend resumed during the first week of the year before the price stabilized in a narrow range. Then on January 25 the SPY reached a record high before some retracement. The up-trend picked up significantly as February began, which eventually led to a number of record closes including March 1.
The white horizontal line in the chart indicates a level that was resistance in mid-February and then support in late February. It proved again to be support in recent weeks. However it was decisively pierced on Tuesday. The 50-day-moving average provided support this week, which may be a good sign. But my white line has proved resistant. Next week could be telling.
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