Tuesday, March 28, 2017 12:17:31 PM
Using the 50-day SMA to Compare Charts
The chart below shows a broad range of ETFs with the 50-day SMA for reference. I do not think moving averages offer support or resistance levels, but they can be used to compare performance and generalize the trend. The 50-day SMA is a medium-term indicator. The trend is generally up when above and down when below. Note that SPY and QQQ are above, but IJR and MDY are below. Large-caps and large-techs are holding up better than small-caps and mid-caps.
TLT is above the 50-day SMA, but in a trading range and near range resistance. A break below 120 would reverse the upswing and this would be positive for banks. USO remains weak with short-term resistance set at 10.50. A break above this level is needed before getting interested in energy-related stocks and ETFs. GLD is trending up as the Dollar trends down. Note, however, that it could still be a bear market rally for GLD and a correction for the Dollar
The chart below shows a broad range of ETFs with the 50-day SMA for reference. I do not think moving averages offer support or resistance levels, but they can be used to compare performance and generalize the trend. The 50-day SMA is a medium-term indicator. The trend is generally up when above and down when below. Note that SPY and QQQ are above, but IJR and MDY are below. Large-caps and large-techs are holding up better than small-caps and mid-caps.
TLT is above the 50-day SMA, but in a trading range and near range resistance. A break below 120 would reverse the upswing and this would be positive for banks. USO remains weak with short-term resistance set at 10.50. A break above this level is needed before getting interested in energy-related stocks and ETFs. GLD is trending up as the Dollar trends down. Note, however, that it could still be a bear market rally for GLD and a correction for the Dollar
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