Asset Watch
Tuesday, November 15, 2022
To explain, the S&P 500 hasn’t closed above its 200-day MA since April. After attempting to achieve the milestone in August, the index quickly reversed and made new 2022 lows. So, with the 200-day MA at 4,081.05, it’s only 2.2% above the Nov. 11 close.
However, with the Q3 earnings season nearly over and inflation showing signs of deceleration, the bearish clouds have somewhat dissipated. Additionally, with bullish seasonality present until year-end, the backdrop is relatively constructive.
Therefore, should you continue to ride the wave, or is it wise to take profits and wait for a confirmed breakout above the 200-day MA before buying back in?