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The 200-Day Moving Average Is Everything For The Stock Market Now
Michael Swanson
April 17, 2025
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Become A Better Trader And More Informed Investor
If you ignore the news headlines for the moment what is happening now with the stock market is simple to understand.
The 200-day moving average is everything for the stock market.
The whole reason why the stock market took the big drop it did last week was because it came under sever damage after it broke through this key support level in March, tried to bottom, and then fell again.
In March the S&P 500 broke the 200-day moving average when it fell through 5700 down to 5500.
It then tried to rally above that level and failed to do so.
Once it then fell through 5500 it collapsed in April.
Now it is forming a new trading range with resistance at 5500 and support likely at 5100, which is likely to last for several weeks.