Intro: The SPY 200-day moving average (MA) is an essential technical indicator for traders and investors. It offers a definitive view of the S&P 500 index’s long-term trend by averaging the closing prices of the SPY ETF—a proxy for the U.S. large-cap market—over the last 200 trading days.
What does the spy 200-day mA mean?
Recognized as a critical psychological threshold, the SPY 200-day MA delineates bullish from bearish territories. Prices above this MA suggest a bullish market with potential buying opportunities, reflecting investor confidence and market strength.
Is the 200-day SMA a good indicator for spy?
The 200-day simple moving average is a reliable indicator for determining a bullish or bearish bias in SPY. The 200-day SMA strategy has outperformed a buy and hold approach since 2000, especially during periods of large drawdowns.
