S&P 500 Closes Above 50-Day Two Days in A Row!

You know it has been a bad market when the first quarter is nearly over and the S&P 500 is just now closing above its 50-day moving average for the first time. We'll take what we can get though. Following today's intraday rebound after the much weaker than expected Consumer Confidence report, the S&P managed to close above its 50-day for the second day in a row! In addition, the index also broke above its downtrend line which had been in place since late November. As the market digests its gains of the last few days, one sign of the market's health will be a hold above these levels.

While the 58 consecutive trading days that the S&P 500 traded below its 50-day moving average may have seemed like an eternity, since 1928, there have actually been 28 other streaks where the index went as long or longer without trading above it. The most recent streak ended in August 2002, when the S&P 500 went 86 days without trading above its 50-day.