S&P500 Phase Analysis

US market performed well this week. The S&P500 index was up 37 points (2.6%) for the week to close at 1425.

We have mixed economic data on Friday. Housing starts for April exceeded economist’s expectation whereas the University of Michigan consumer sentiment survey reading for May was below estimates.





The market looked to be heading towards triple digit losses for the Dow but buying in the afternoon pushed the index back near the unchanged mark.

The S&P500 is still in “Recovery” mode and the index is now testing the 200 day moving average of 1427.

If you look at the daily chart for the S&P500, the index looks bullish based on MACD and slope of the Bollinger band.

My personal opinion is the index will break the 200 day moving average soon and the index will be moving to “Accumulation” phase.