After opening the day lower, the S&P 500 finished right at its highs for the day today. That wasn’t enough to keep the index above its 200-DMA, though, which was a level that it crossed to the upside last Friday for the first time in 2016. Let’s just hope what follows this current two-day-only stint above the 200-DMA is not a repeat of what happened the last time the S&P 500 had a two-day-only stint above the 200-DMA in late December (red circle in chart).
You can probably put most of the blame on the S&P 500 closing below its 200-DMA average today on a stock that not only isn’t in the S&P 500, it is not even a US company! Shares of Canadian drug company Valeant (VRX) lost more than half of their value today, and that decline cast a pall on the entire Health Care sector, which declined 1.9%. The only other sector that underperformed the S&P 500 on the day was Materials, which fell 0.9%. Were it not for that decline in the Health Care sector, the S&P 500 would have likely finished a lot closer to unchanged or even up on the day.