What are S&P 500 200-day moving averages?

In reality, simple S&P 500 200-day moving averages are just that: the average values of a 200-day period sample of pricing values. The derivation for this indicator is as follows: Although the arithmetic behind the SMA is relatively basic, it is cumbersome. Fortunately, modern software trading platforms calculate moving averages automatically.

What is a 200-day simple moving average (SMA)?

The 200-day simple moving average (SMA) is considered a key indicator by traders and market analysts for determining overall long-term market trends. The indicator appears as a line on a chart and meanders higher and lower along with the longer-term price moves in the stock, commodity, or whatever instrument that is being charted.

Is a 200-day moving average a bullish sign?

Typically, crossing above a 200-day moving average is viewed as a bullish sign. The S&P 500, along with its tracking ETFs, are about to approach this key level. Bulls will hope momentum can break higher, whereas the bears will be on the side that the market is running out of steam.

Is the S&P 500 running out of steam?

The S&P 500, along with its tracking ETFs, are about to approach this key level. Bulls will hope momentum can break higher, whereas the bears will be on the side that the market is running out of steam. See below a year-to-date chart of the S&P 500 along with its 200-day moving average.