Correcting higher today after the plunge yesterday, but.....
The S&P index fell sharply yesterday and in the process fell back below the 50 day MA (white MA line in the daily chart below).
The price of the broad index moved below that MA line in March (but did not close below the line). In April, the price stayed below the MA line for 7 days, but was busted after round 1 of the French elections. So, we have spent time below but with limited downside momentum.
Today, the correction higher has peaked at 2368.58, just below that 50 day MA level at 2369.17. If the price of the S&P is able to get back above that MA line, the tumble lower yesterday might be chalked up as Trump hysteria. If, however, the level is NOT breached, The technical picture remains bearish with the 100 day MA at 2337.68 the next target.
Be aware.
Implications for the USD? Get above, more bullish. Stay below, and the dollar can continue lower.
