US equities had a nice start to the week as the S&P 500 moved into positive territory for the month of February. From its low in February, the S&P 500 is now up by 7.5%. Below we have provided an updated look at charts of the four major averages to see where things stand relative to recent trends.
While today’s rally put the S&P 500 into positive territory for the month of February, the index is still below its 50-day moving average (DMA) and has yet to make a higher high. It got very close today (within half a point!), but came out just shy. If the rally is to continue, we need to see the index break to the upside of these resistance levels and hold.
The story for the Nasdaq is similar to the S&P 500. While today’s jump helped the index to marginally break, or at least, test its downtrend, it is still quite a ways from either its 50-DMA. Looking a little further back, current levels also coincide with the closing levels from last August and September.
The chart of the Russell 2000 small cap index looks nearly identical to the chart of the Nasdaq in the short term. This index also tested its short-term downtrend but is now where near close to its 50-day moving average and still has a ways to go before making a higher high.
Finally, we will leave off on a positive note by looking at the chart of the S&P 400 mid cap index. While it also remains below its 50-DMA, today’s close actually represents the second higher high for the index since its intraday low on 1/20. Higher highs? Haven’t been able to say that in quite some time.