TRADING JM

[TREND1]

S&P 500 RETESTS 200-DAY AVERAGE ... Going into this week, the S&P 500 was up against chart resistance along its summer high and in a short-term overbought condition which was starting to weaken. That was shown by its 14-day RSI line (top of chart) starting to retreat from its overbought level at 70. That line is nearing its first potential support level at 50. At the same time, the price bars show the S&P 500 pulling back to initial support at its 200-day moving average (and the 2060 level). Daily MACD lines (below chart) have turned slightly negative for the first time since late Sepember, which also reflects short-term weakness. [The fact that weekly MACD lines are still positive, however, is supportive to the market's broader uptrend]. Even if the 200-day line is broken, important support is likely around the September peak near 2020. So far, this looks like a normal pullback after October's strong gains. And seasonal trends remain positive, especially after Thanksgiving.