Published on 24 Mar 2022 on Market Watch
The S&P 500 chart is still bearish despite the stock market's recent gains
The S&P 500 index stretched its oversold rally about as far as it could. The question still remains as to whether it is just an oversold rally or the beginning of a new bull-market phase.
As we’ve said many times, oversold rallies typically die just above the declining 20-day moving average. This one has slightly exceeded its 20-day MA and bumped into its 200-day moving average. In doing so, it broke though the downtrend line that had been in force.