SPDR S&P 500 ETF Trust: Trend Structure With 100 Week Moving Average

technical chart lookCorey Rosenbloom: Did you know that the price distance above the 100 week Simple Moving Average (SMA) for the S&P 500 just reached the highest value (most overextended) of all time, exceeding the stellar peak during the Tech Bubble Boom?

Indeed – it’s true.  Let’s take a look at a Color Chart of the recent S&P 500 action and compare today’s overextended action with that of the Tech Bubble period of 2000.

S&P 500 SPX S&P500 100 week Moving Average Trend Structure Bull and Bear Market Stock market Trading tactics investment

We see the pure price of the S&P 500 overlaid with a 100 week Simple Moving Average (SMA).  I color-coded the periods above the weekly average as Green and beneath the average as Red.

We can also use moving averages – and whether price is above, beneath, or crossing through them, to define a trend in simplest terms (bull = above; bear = beneath).

Using that simple definition, we see the initial Bull Market of the Technology Bubble/Boom and the shift to the Technology Bubble Burst (and recession), to the recover that ended with the 2007 peak, the Financial Crisis Bear Market, and the liquidity/stimulus-fueled recovery that takes us through our current Bull Market.

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