A Major Monday Awaits For US Stocks Struggling To Stay Above Key Levels

A Major Monday Awaits For US Stocks Struggling To Stay Above Key Levels
Andrew Rummer

over 2 years ago1 min

Mentioned in story

As the US stock market prepares to open on Monday, its enviable run of gains is facing some serious headwinds. 

As the chart above shows, all year buyers have stepped in and supported the S&P 500 (in blue) whenever it’s neared its 50-day moving average (in pink). In fact, the index has gone for an amazing 219 straight trading sessions without back-to-back closes below that key technical level, the longest streak since 1996.

But the S&P 500 closed marginally below its 50-day moving average on Friday and futures on the index are down another 1.8% as of 8:45am in New York. The losses put that 219-day record at risk – unless the market can put in a spectacular reversal over the course of the day on Monday.

A sustained drop below the 50-day average would signal a shift in momentum for a stock market that has only looked to move higher and higher this year. There’s a lot riding on today’s trading session in terms of market mood – and plenty of investors will be looking on anxiously.

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