On Wednesday, the market’s performance was mixed --
with strong gains in the morning mostly wiped away later in
the day. Although the S&P 500 ended the day with a gain of
0.1% (to end at 1046.50), the general weakness over the past
few days has kept the S&P below its 50-day moving average.
This is the first time the index has remained below the 50-day moving average since the period of weakness in early July.
Although the market remains technically weak, the
Stochastic Oscillator has started to creep up. That said, this technical indicator still suggests that the market is in neutral territory. The Relative Strength Index (RSI), currently at 43, also indicates a neutral market. If the RSI drops back to below 30, bulls may step in to an oversold market. But if the reading creeps up, then you could see further choppy waters.