Tackle Today: The 200-day Simple Moving Average
May 27, 2020
≈ A battle line between Bulls and Bears ≈
Traders,
Yesterdays breakout on the market was impressive. Many sectors and industries who had been underperforming had a nice run up. This morning, we are seeing some carry through and prices continue to test these higher levels. The big battle between Bulls and Bears today on the S&P 500 will be right at the 200-day Simple Moving Average.
You can track many moving averages, but it is commonly understood that the 200-day SMA is one of the most popular amongst traders and investors alike. It is a line in the sand for market participants, and one that many have been eyeing for some time.
If you have not added any Moving Averages to your charting platform, consider doing so. They are commonly used and unbelievably valuable to have in your tool kit to better understand price action and trend. When you are in one of the Trader’s Lounges, ask the coaches which ones are their favorites.
If you are looking to do some self-study on the topic of Moving Averages, consider watching one of our archived videos on the topic. You can use this link here to browse some of them: https://www.youtube.com/channel/UCmUs7CmNFAr7gE6wP7ktVjw/search?query=moving+averages
Which moving averages do you use the most? If the 200 is not one of you are answers, you’ll need to add it ASAP because that’s where the fight over price is happening right as we speak.
Happy Trading,
Reminder: we have a live show on YouTube tonight with Coach Tyler Craig where he will teach legging into Options Spreads. Join the show at 7 pm EST here (and make sure you subscribe and click the bell on our channel): https://www.youtube.com/c/tackletradingteam
Chart of the Day
The S&P at the 200-day Simple Moving Average
Yesterday’s breakout has stalled right at the 200-day SMA on the S&P 500.
Video of the day
200 Simple Moving Average & The Trenches
In episode 262 of the Trading Justice podcast Coach, Matt Justice likens the 200 simple moving average unto trench warfare. One hell of an analogy!
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