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He recommends putting a trailing stop in at the 20-day moving average (currently around $17.50, see blue line).
Technically speaking, the long-term uptrend will remain valid until we see a close below the moving average, currently just below $15.
–The CBOE Market Volatility Index (VIX 36.82) bounced higher from potential support at its 80-week moving average, currently situated at 33.56.
"The S&P 500 is about to break through its 200-day moving average, currently at around 1300 points," said Barry Hyman, senior market analyst at Ehrenkrantz King Nussbaum.
Furthermore, the trust remains capped by its falling 20-week moving average, currently located at the 79 level, and appears poised to slip back below former resistance at its 10-week trendline.
For today's chart we've chosen to take a look at Gilead Sciences because several technical indicators are suggesting that we could see a pullback toward the support of the 50-day moving average (currently near $77).
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The SPX's 80-day moving average is currently hovering overhead at the 1,500 mark, fortifying this region as one of resistance.
Moreover, the 80-day moving average is currently sitting at 835.33, a trend line that has acted as resistance for bear market rallies.
The recent trend in the CBOE equity put/call ratio has dropped quickly (the ratio's one-month moving average is currently 0.63, down from 0.67 just two weeks ago).
e expect this rally to push $SPX up to at least its declining 20-day moving average, which is currently at 1980 and falling.
The S&P 500 has spent the last couple of weeks bouncing in a channel between the 200-day moving average which is currently around 2597 on the downside and on the upside at 2670, a level seen as key resistance by many traders.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com