Stocks Bounce Off 200-Day Moving Average Again

This is the second time in less than 2 weeks that we have bounced at this indicator. The moving average continues to rise, making each bounce ever more risky and difficult. Eventually, negative news will send us plummeting through the 200-day. I wouldn't be surprised if it occurs in the next few weeks.

Stocks Reach Key Levels

Stocks have reached key support levels today and over the past few days.

This first chart shows the support levels from the market bottom on May 7th on the 4-hour chart. We have held that support level thus far today.

In this second chart showing the daily period, we see that stocks bounced down off the 50-day moving average resistance level (light blue line), and stocks have thus far held above support on the 200-day moving average (magenta/pink line).

Stocks Find Resistance at 50-Day Moving Average

Both the lower Bollinger Band and 50-day moving average are at about the same level. I would not be surprised to see a bounce off this level in the next few days.

So Let the Buying Begin

As expected! This occurred just at the level I expected -- the 50-day SMA!

Stocks Push Higher Off 50-Day MA Support

It will be interesting to see if stocks can hold support over the next several days. The 50-day moving average is the light blue line just beneath the last two candles.