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Is the 200 Day MA forecasting a Pullback in the S&P 500?
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@scaredycatguide
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I happened to look at the daily chart of the S&P 500 today and noticed something pretty easy to see, the 200 day moving average and how far away price is from it.
Expansion and Contraction...
Looking at the chart you can see the last two times the index expanded this far from the 200 day moving average corrections occurred.
The last of which was back in September. Price never went all the way back down to it but 2/3rd of the "gap" was filled.
As I look at this chart now I can't help but think there will be some kind of sell off in the near future. Even if price tested the breakout highs of 3600 it would alleviate the spread somewhat.
I know, rather simplistic analysis, but my eye sees what it sees.
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