Major indices - 200 day moving averages

by Malcolm Pryor on 24/10/2012
Tuesdays' declines caused some concern to bulls. One obvious question is, what can they look to for potential support. One definition of an up trend is price staying above the 200 day simple moving average, and for major indices that is still the case, in fact in many cases that moving average is still rising, a further bullish factor. So how far away are those moving averages? The Dow Jones is the closest currently, with the moving average at 12969, only 0.8% away from the Wednesday close 13077. The S&P500 is a bit further away (at 1376, 2.3% away from the Wednesday close 1409). The FTSE 100 average is at 5722, 1.4% away from the Wednesday close 5805. Closes below the 200 day moving averages would concern the bulls even more.


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