The much awaited and anticipated move back to MA(50) happened today. Nothing wrong with that. A pullback towards MA(50) is healthy in bull markets. No long term damage done to the S&P chart. On top of it, the move has occurred when the market is very much in oversold conditions, increasing the odds of an up move.
But a word of caution here. If you are long, you dont want the market to consolidate at MA(50). You want the MA(50) to act as a springboard and the markets to bounce from here. The more it tests the MA(50), the weaker the support becomes. On the upside, MA(20) and the descending trendline still remain strong resistance as pointed out earlier in the week.
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