The S&P 500 has been holding up above the 50-day average but that is either being tested or is going to change here very soon. At $133.27, the 50-day moving average is $133.15. The 200-day moving average is down at $130.60 today.
On the DJIA, the DIAMONDS are just now trading under the key 50-day moving average. At $125.28, that key moving average is $125.56.
The the PowerShares QQQ Trust (NASDAQ: QQQ) is down at $62.76 today and the 50-day moving average is $62.86. Now that the 50-day moving average has broken, the 200-day moving average is down at $61.25.
If you notice the trends here, the more important 200-day moving averages are all very close to being hit now.
We can tell you in more detail what the cause is, but you already know it: Greece, PIIGS, Europe, China, weakness in BRIC nations, a strong dollar, and on and on. Soon it will be the coming fiscal cliff… No wonder no one wants to read news about the stock market these days.
JON C. OGG
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