S&P 500 Searches for Support Near 250 Moving Average
April is starting with same way March ended--with market weakness. Currently, the S&P 500 is declining toward its 250 SMA. It would be the second test in two months (last was February 9th).
Normally, we expect the market to find support at its 250 SMA, and a second test that holds support would be a positive signal. The 2,550 level appears to be a key level to watch.
On the chart, note that the 10 SMA is below the 50 EMA, and it is making a lower low (relative to the last 10 SMA low). So short-term, things are still bearish.
The daily pattern is a large A-B-C pattern, and we're in the C wave now. Unless there is a strong and sustained bounce at the 250 SMA zone, the market could decline significantly below the February low.