S&P Chart Looking and Hoping for Support

Friday was the 25th anniversary of the stock market crash of 1987, known as Black Monday. The market was coincidentally very weak on Friday due to weak earnings reports. Now on Monday we have stocks in the red again but by a smaller margin. Today we are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid and most representative of the broad markets out of all the ETFs that trade.

For Monday’s chart analysis, Phil Erlanger said:

SPY is pivot to support. Given Friday’s weakness, expect support at $142.44 to be tested. Watch for a break of Friday’s two hour low at $143.05.

When we noted the 50-day moving average it seemed a bit far off under the price at the time. After Friday’s selling it is upon us. The SPY has a current 50-day moving average of $143.08 today and the low back on October 10 was $143.09. Watch these levels closely.

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OCTOBER 22, 2012