If the bulls were looking for a reason to pop the cork, this afternoon brought it. The S&P 500 closed above its 200 day moving average, 2019.91, for the first time since just before new years on December 30, 2015. Friday afternoon’s close took the market over that mark by a few points, closing at 2022.19. This follows what has been a very strong multi-week move higher off the low reached on February 11th, evident below on the daily chart.
This strengthens an already strong technical backdrop for US equities in what has otherwise been a challenging year for stock investors. While the picture has improved, challenges remain as the 200 moving average continues to move lower, and significant technical hurdles remain intact above currently levels, compounding the mixed fundamental profile for US stocks.
For traders, caution remains warranted. Particularly once the critical 2060 level is reached. Still, the odds likely favor continued upside from these levels, absent significant unforeseen shocks to the markets.