By Matthew Kerkhoff
The market has been recovering lost ground for the entire month of October. After triggering a Dow Theory bullish confirmation on October 9th, the market continues to work its way higher and has recently tackled some key technical levels.
During trading today the S&P 500 managed to hurdle its 200-day moving average (chart below). The index had been below this key mark since late August, following the Chinese yuan devaluation. The Industrials and Nasdaq (not pictured) also surpassed their respective 200-day MAs.
We’ve experienced some mild churning as the market headed higher, and this has resulted in the large-cap index not yet reaching oversold levels on the RSI. This suggests there may be a bit more room for the rally to continue before we see a period of consolidation. With the move today, the S&P has finally pushed back into positive territory for the year.
The rally that manifested over the last ... Log in or subscribe to continue reading.