Fusion S&P Review

Sometimes in life and the markets the KISS method (Keep It Simple Stupid) works the best. In an era of
high tech math, computational algorithms and new data streams sometimes something simple works
the most effective. That said as seen above the S&P 500 has been and continues to trend lower below
its’ down sloping 30-day moving average (red line and blue arrows). This average (for whatever reason)
has provided short-term resistance like clockwork since the decline began back in August and once
again repelled the most recent rally off the lows on Monday. However this is the shallowest pullback from
the 30-day moving average resistance and the quickest subsequent attempt to move back above it (after a decline)
since this all began. That said we will be watching trading activity closely the next couple days. We would view it
technically significant from a near-term (trading) perspective if this index could finally move back above its’ 30-day
moving average (and the 900 level on the S&P) as it would suggest a tradable rally (from the long side) may ensue.




From Kevin Lane, Chief Market Technician

posted by Peter Greene