S&P Support Levels

Your humble author is on the West Coast for a couple of days.  Since it seems that the markets may be rolling over after a very strong rally, it is worthwhile to take a look at where support levels may be so we can make informed decisions about whether to hold, when to remove hedged positions like puts and reverse ETFs, and opportunities to buy.  Today, we are going to let Bespoke Investment Group LLC do the heavy lifting.  Below is Bespoke’s technical analysis of the S&P 500 Index.

S&P 500 Support Levels

With major equity indices pulling back again this morning, we wanted to highlight some of the key levels of support for the index.  With regards to its 50-day moving average (DMA) of 1,010, the S&P 500 is still over 4% above that level.  Looking at the 20-DMA, the S&P 500 would have another 1% to go before reaching that level (1,040).  Coincidentally, the 20-DMA aso coincides with the highs from late August, so that is a level to watch in the short-term.