By Matthew Kerkhoff
The August meltdown was a considerable setback, but since then major indexes have been working their way higher. The S&P 500, shown below, remains in a short-term uptrend, evidenced by rising peaks and rising troughs.
Last week the index tested its September intraday peak along with the 50-day moving average. Both technical levels held and the S&P subsequently rebounded above its longer-term 200-day MA.
Currently the S&P is bounded by its most recent peak at 2110 and trough at 2022. A rise above 2110 will continue the bullish uptrend, while a break below 2022 would indicate momentum shifting back to the downside.
As a capitalization weighted index, companies with extremely large market caps can distort the S&P 500. Looking at an equal weighted version of the index (below) paints a picture that is not quite as cheery, but still suggests that the uptrend is intact.
Treating all companies in the S&P 500 the ... Log in or subscribe to continue reading.