Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
We are at a familiar spot and waiting for some confirmation of an inflection point. The S&P 500 is at the top end of its recent range and teasing with those highs from last week. You can see the low 1390s are a key area going back a month or so as well. The index has recaptured its 50 day moving average but frankly it has been flipping above or below constantly the past few weeks, doing nothing but creating headaches and headfakes, so I won’t put too much stock into it. That said, the 20 day moving average has also been captured which is a good positive. As I wrote yesterday a small pullback or sideways action would be much preferred to these big 1-2% daily moves. If this level does not hold over the next few days, the index remains range bound as it has been for most of April.
The Russell 2000 is also at a key level as it bears in on the gap down of April 5th. As the weakest index during almost all of 2012 it is still below its 50 day moving average.
NASDAQ is hostage to Apple…
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