The 50-DMA Holds Again

The biggest difference between theory and practice on Wall Street is technical analysis. Every academic dismisses it as voodoo, but nearly everyone who follows the market regularly gives it at least some credibility.

Personally, I’m in the doubter camp but I do have to concede that the market seems to take moving average points seriously. Perhaps it’s just a coincidence — yet another attempt to find logic in a random pattern — but the S&P 500 just made a near perfect bounce off its 50-DMA.

Posted by on October 15th, 2012 at 6:00 pm


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