Financial SPDR ETF Approaching 200-Day Simple Moving Average

05/08/2009 12:01 am EST

Focus: ETFS

Tim Bourquin

Co-Founder, The Traders Expo and The Futures & Forex Expo

The banks have had a nice run up from their lows in 2008. However, I noticed today that the industry ETF is coming precariously close to the 200-day simple moving average.

These things tend to self-fulfill simply because lots of traders are watching this key indicator.

A trend line indicates that it could break through, so be sure to get a few candles for confirmation, but if it does bounce off and head downward, it might be nice for a short play—but only for a few days.  And be sure to set your stop just above that line.

By Tim Bourquin, Trading Content Director, MoneyShow.com

 

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