With the VIX making a big move up the last week and doom and gloom seeming to be everywhere, stocks and indexes are making nice sized moves and there seems to be the overall feeling that the market is heading down. And with the trouble in Greece building again only adds fuel to the fire.
Here’s more from Reuters…
“The S&P 500’s 200-day moving average is the line in the sand as the bulls and the bears fight over the U.S. stock market’s direction. It will face one of its stiffest tests next week with Greece’s debt crisis appearing to reach a climax.
After setting its closing high for the year on April 29, the S&P 500 has lost 7 percent. Wall Street typically defines a drop of 10 percent or more from a recent peak as a correction.
The benchmark S&P 500 hit its lowest point right on its 200-day moving average in volatile trading on Thursday. The index then rallied 1 percent from that session low to close on Friday at 1,271.50. It also scored its first weekly gain in the last seven weeks.
At Friday’s close, the S&P 500’s 200-day moving average was around 1,259. If the level holds, it could be a springboard for stocks to rally.”
Read entire article from the source here