The S&P 500 is back below the daily 200 simple moving average. The last time it traded below this indicator was towards the end of January 2022.
What does this mean for price? Not much at the moment as price is consolidating at the moment so we can expect to see moves above and below the 200 simple moving average.
The high of the consolidation zone is at $4818 based on the January 4th high. The low is at $4222 from the January 24th low and we can expect price to remain within this range.
A breakout from consolidation, either to the upside or the downside, will give us an early indication of where price may head next.
If we start to see a pattern of lower lows and lower highs below the 200 simple moving average, we may see a long-term downtrend. But the bias is still for a continuation to the upside seeing that the overall trend is bullish. We now want to see a quick move back above the 200 simple moving average and new all-time highs.
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