Price has traded above and below the 200 day MA for 3 straight days
The S&P index is trading up about 2-3 points at the moment at 2769.70. That takes the price just above its 200 day MA at 2766.59. The price of the S&P has now traded the last 3 days above and below that MA level. The last two days have higher lows, but also lower highs (the high today is at 2772.17 (the high on Friday was at 2775.77).
If the price can stay above the 200 day MA now AND take out the Friday high of 2775.77), that would be a step in the bullish direction. Fail and move back below and the buyers could easily turn to sellers…again.
For the Nasdaq index, it is down -5 points at 7492.. The 200 day MA is up at 7506.035. The high for the day reached 7496.96 – short of that line.
The good news for the Nasdaq is the low was way down at 7400.06. So it has recovered a lot of the declines. However, to turn the bias around, the price has to get and stay above the 200 day MA level. Since breaking below on Wednesday last week, the sellers have been leaning near that MA line. Seller remain in control below the MA line.