Below the 200 Day Moving Average
7:38 America/Los_Angeles 20 May 2010 
6 Comments
This week has definitely been a nasty week for the bulls and a great week for the Naked Hedge Fund as stocks continued a slide down into bear territory. We haven’t been below the 200 day moving average since mid 2009. Currently the market is down more than 300 points as Stops are being triggered in every part of the market. The next line of support is at $106 on the SPY, but I wouldn’t be surprised if the bulls try to defend the 200 day moving average by bouncing back through at some point in the near future.
Needless to say we are currently remaining short since our rotation on April 30th, where we were able to spot the long term resistance coming into play on this post : http://www.nakedhedgefund.com/stock-analysis/stock-tech-analysis/long-term-resistance-coming-into-play/
Below are a couple charts. One is a long term 2 year chart showing the significance of the 200 day moving average, while the other is a shorter term 6 month chart showing the breakdown.
Nice work!.. I just wish i could get into my TD Ameritrade account … this is the last day I have an account with them.
yeah i heard about that with TD Ameritrade .. that is definitely not a good thing to happen when investors are jittery
Well we hit the $106 support this morning lets see if the bulls are going to try to pull something together here.
Good call on the $106 support level.. what were you seeing yesterday to nail that number?
Bernie its the support from the pullback in late Jan early Feb
Bernie,
keep in mind that the $106 support could have been broken as well. It was something to keep in mind… and for now it held.