“The S&P 500 was weak again yesterday with some further selling this morning and a brief drop beneath the 1400 level. However, prior to this week, the index had risen for six consecutive weeks. Following a run like that a down week was inevitable and healthy, as it is allowing the rally to breathe,” wrote Investors Intelligence analyst Tarquin Coe in a newsletter Friday.
“We remain bullish and are holding onto longs in anticipation of an upside reassertion. Only a sustained break of the 50-day exponential moving average, currently rising through 1377, would cause us to review that standing,” he said.
SPDR S&P 500
Full disclosure: Tom Lydon’s clients own SPY.
