Market Woes
The S&P dropped another 10+ points today on pace for its second losing week in a row, after establishing an all-time high. Most of the concern in the market is due to the situation between Russia and Ukraine. If this conflict can get resolved, you should see the market returning to the bullish trend that it has been in for the last 3 years.
Even without the uncertainty in Eastern Europe, the market was in the need of a breather. A nice pullback is always a buying opportunity in a bullish market. As it stands, the S&P has returned to a price level established about 2 months prior and has already broken through its 50 day moving average. Breaking through the 50 moving average has happened more than a few times in this bull run before returning to the upward trend.
Right now it looks like the market is approaching a support level at 1900. Breaking this level would take us closer to the 200 day moving average. The 200 day moving average has really only been tested twice in this bull run. Both of these times occurred back in 2012. The first time, the market responded with 3 positive days to take it back above the 200 day average. The second time, the market came back above the 200 average within a week. We are not there yet but those are the 2 levels to be aware of.
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