On Tuesday, October 28, 2008 the S&P 500 had a very good day, going up 10.79% from an open of 848.92 to close at 940.51.
In a previous blog, we also speculated the S&P would re-test the previous lows.
On October 17, it appears as if we hit an intra-day low which is almost as low as the low on October 10. If we look at the SPY, the S&P 500 ETF, the SPY did successfully test the low on October 10.
The 50 Day moving average on the $SPX is 1130, and the closing price on Tuesday, October 28, is around 940. The S&P 500 is around 20% below the 50 day moving average, which is an overextended amount.
There will be a time when we do rally, and the S&P 500 will approach the 50 day moving average.
Is now the time for a tradable rally?
Today's Stock Chart