I happened to actually stumble across this interesting chart today and I want to share it with you all. What you have is the S&P using the weekly candles and a 200-week moving average. What is concerning here is how the market has tried three times now to break through it, dating back to August of 2008, and the first two times it has resulted in a major, and I do mean a major sell-off. So this third time, will we finally break through it or not? Not sure. But I can tell you this much, eventually it will break and when it does it will likely lead to a huge breakout as it has done before in the past. Today could have been that day in which we broke through as the 200-week moving average currently sits at 1193 and we went as high as 1196 at one point today. So continue to monitor this important resistance barrier that is wrecking havoc on the markets currently.
Here’s is the Weekly S&P Chart.