S&P trades between 100 and 200 day MA going into the CPI tomorrow

Technical Analysis

As the clock ticks to the close, the S&P index is trading near the high for the day. The index is up 40.71 points or 1.05% at 3960.17.

Looking at the daily chart, recall from last Friday, the price closed back above its 100 day MA for the first time since December 14. ON Monday and Tuesday, the price stayed above that MA line on the dips. Yesterday, the price bounced right off the MA near 3877 and closed higher (and at the high, up 27 points or 0.70%).

Today, that momentum has continued.

The rise today has taken the price closer to the next key target at the 200 day MA. That MA comes in at 3987.29. It will take a move above – and staying above – to give the buyers more control.

Recall at the end of November and then again the day of the CPI in December, the price moved above the 200 day MA. The first try failed after two closes above the MA line. The day of the December rise, the price immediately failed that day (after gapping higher – be on the lookout for a failure tomorrow), and did not have a close above the MA level again.

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