Current Trading Ranges of US Markets

This is a free edition of the Technical Indicator, a financial newsletter, and rather backs up what I've been saying on my High Yield Times blog. It looks at the short-term trading ranges of the major US stock markets.

The S&P 500 February high of 1,104 matches perfectly with the 50-day moving average at 1,105. We are now just 10 points away from this and a break-out will obviously be bullish. Note that the 200DMA has not been tested and is now at 1,025 and rising up to the recent market support at 1,044.

As I myself have said, the 50DMA and 200DMA are currently sandwiching the market and a break in either direction could signal the start of a new trend. All the media talk of a 'correction' is just to stop investors panicking about another crash, however, this may indeed be a mere correction, so long as that 200DMA holds firm.

The Technical indicator also looks at the Dow and Nasdaq charts, which have a similar shape to the S&P 500.