S&P 500 approaches 200-day moving average

AngiePhotos

Benchmark exchange traded funds that track the S&P 500 (SP500) look to test their 200-day moving averages, a technical level that has not been topped since early April.

Three funds currently approaching that market are the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), iShares Core S&P 500 ETF (NYSEARCA:IVV), and the Vanguard S&P 500 ETF (NYSEARCA:VOO).

Together the three funds cumulatively are comprised of nearly $1T assets under management, with $989.70B currently dispersed among the ETFs. They represent the market’s three largest exchange traded funds.

All three funds find themselves rallying of late, up roughly 18% since the index bottomed out to its year-to-date low in mid-June. SPY, IVV, and VOO also have now hit 3-month trading highs as well, despite still being down 10.5% in 2022.

The 200-day moving average provides a longer-term trendline. The provide a look at the overall trend of an investment instrument, while also identifying potential support or resistance areas. Typically, crossing above a 200-day moving average is viewed as a bullish sign.

The S&P 500, along with its tracking ETFs, are about to approach this key level. Bulls will hope momentum can break higher, whereas the bears will be on the side that the market is running out of steam.

See below a year-to-date chart of the S&P 500 along with its 200-day moving average. Additionally, in greater market news see how markets are searching for direction early on during Tuesday’s trading session.

Leave a Reply

Your email address will not be published. Required fields are marked *