{"id":19308,"date":"2023-03-03T00:41:52","date_gmt":"2023-03-03T05:41:52","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=19308"},"modified":"2023-06-22T13:20:44","modified_gmt":"2023-06-22T17:20:44","slug":"200-day-ma-support","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/","title":{"rendered":"Supercharge Your Trading with the 200-Day Moving Average Support"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"717\" height=\"717\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2023\/03\/DALL\u00b7E-2023-03-03-10.49.47-line-in-the-sand-717x717.png\" alt=\"200-day MA line in the sand\" class=\"wp-image-19314\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2023\/03\/DALL\u00b7E-2023-03-03-10.49.47-line-in-the-sand-717x717.png 717w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2023\/03\/DALL\u00b7E-2023-03-03-10.49.47-line-in-the-sand-110x110.png 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2023\/03\/DALL\u00b7E-2023-03-03-10.49.47-line-in-the-sand-768x768.png 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2023\/03\/DALL\u00b7E-2023-03-03-10.49.47-line-in-the-sand-120x120.png 120w\" sizes=\"auto, (max-width: 717px) 100vw, 717px\" \/><\/figure>\n<\/div>\n\n\n<h1 class=\"wp-block-heading\">Are you using the powerful 200-day moving average in your trading strategy? If not, it&#8217;s time to start paying attention. Discover how the 200-day MA has now become a crucial &#8220;line in the sand&#8221; for the S&amp;P 500 ($SPY) and Nasdaq 100 ($QQQ).<\/h1>\n\n\n\n<p>In a previous blog post, we explored the significance of the <a href=\"https:\/\/new.morpheustrading.com\/blog\/200-day-moving-average\/\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/200-day-moving-average\/\" target=\"_blank\" rel=\"noreferrer noopener\">200-day moving average as a &#8220;must follow&#8221; indicator<\/a> for 2023. <\/p>\n\n\n\n<p>At that time, the 200-day moving average (200-day MA) was firmly acting as resistance for the S&amp;P 500 ($SPY) and Nasdaq 100 ($QQQ) indices. However, the technical picture has changed and the 200-day MA recently flipped to key, long-term support.<\/p>\n\n\n\n<p>In this post, we take an updated look at the long-term trends of the S&amp;P 500 ($SPY) and Nasdaq 100 ($QQQ), and how the 200-day MA has become a key &#8220;line in the sand&#8221; in today&#8217;s market.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/#200-day_Moving_Average_Prior_Resistance_Becomes_New_Support\" >200-day Moving Average: Prior Resistance Becomes New Support<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/#S_P_500_ETF_SPY\" >S&amp;P 500 ETF ($SPY)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/#Nasdaq_100_ETF_QQQ\" >Nasdaq 100 ETF ($QQQ)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/#The_Importance_of_Support_and_Resistance\" >The Importance of Support and Resistance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/#Using_Other_Indicators_to_Confirm_Signals\" >Using Other Indicators to Confirm Signals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/morpheustrading.com\/blog\/200-day-ma-support\/#Power_Up_Your_Trading_Performance\" >Power Up Your Trading Performance<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"200-day_Moving_Average_Prior_Resistance_Becomes_New_Support\"><\/span>200-day Moving Average: Prior Resistance Becomes New Support<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When we <a href=\"https:\/\/new.morpheustrading.com\/blog\/200-day-moving-average\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/200-day-moving-average\/\" rel=\"noreferrer noopener\">previously highlighted<\/a> the long-term charts of the $SPY and $QQQ, we showed you how the 200-day moving average clearly acted as resistance throughout the 2022 bear market.<\/p>\n\n\n\n<p>$SPY and $QQQ have broken out above their 200-day MAs since then, which means that prior resistance has shifted to the new support level. The most basic tenet of technical analysis states that a <a href=\"https:\/\/www.investopedia.com\/articles\/trading\/06\/supportresistancereversal.asp#toc-the-reversal\" data-type=\"URL\" data-id=\"https:\/\/www.investopedia.com\/articles\/trading\/06\/supportresistancereversal.asp#toc-the-reversal\" target=\"_blank\" rel=\"noreferrer noopener\" data-schema-attribute=\"mentions\">prior level of resistance becomes the new support<\/a>&#8212;<em>after<\/em> the resistance is broken (and vice versa).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"S_P_500_ETF_SPY\"><\/span>S&amp;P 500 ETF ($SPY)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Below, notice that $SPY finally reclaimed its 200-day MA in late January, pulled back in February, and is now sitting right at support of its 200-day MA:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/morpheustrading.com\/~rick\/\/charts\/2021\/230302SPYBLOG.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/\/charts\/2021\/230302SPYBLOG.png\" alt=\"$SPY daily\" width=\"715\" height=\"539\" title=\"\"><\/a><figcaption class=\"wp-element-caption\">$SPY daily chart at 200-day MA support (press to enlarge)<\/figcaption><\/figure>\n\n\n\n<p>It&#8217;s positive that $SPY is back above its 200-day MA, but notice the moving average is still trending slightly lower. It would be a more reliable indicator of bullish momentum <em>if<\/em> the 200-day MA starts turning higher. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nasdaq_100_ETF_QQQ\"><\/span>Nasdaq 100 ETF ($QQQ)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>$QQQ has a similar chart pattern to $SPY, as the price broke out above its 200-day MA in late January, then entered into a 4-week correction off the swing high.<\/p>\n\n\n\n<p>It&#8217;s positive that the 200-day moving average of $QQQ has flattened out quite a bit, but it is still sloping lower:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/morpheustrading.com\/~rick\/\/charts\/2021\/230302QQQBLOG.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/\/charts\/2021\/230302QQQBLOG.png\" alt=\"$QQQ daily\" width=\"715\" height=\"539\" title=\"\"><\/a><figcaption class=\"wp-element-caption\">$QQQ daily chart at 200-day MA support (press to enlarge)<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Importance_of_Support_and_Resistance\"><\/span>The Importance of Support and Resistance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As traders, we know the significance of using the 200-day moving average as a support and resistance level. <\/p>\n\n\n\n<p>In an uptrend, the 200-day MA can act as a support level. Conversely, the indicator typically acts as resistance in a downtrend. By identifying and tracking these levels, you can <strong>make informed decisions that consistently put you on the right side of a dominant market trend.<\/strong><\/p>\n\n\n\n<p>In the current market, the 200-day MA is providing crucial support for both the $SPY and $QQQ. <\/p>\n\n\n\n<p class=\"has-text-align-left\">However, it&#8217;s still<em> too early to declare a reversal of the 2022 bear market. <\/em>For that, we would <em>at least <\/em>need to see confirmation of the 200-day moving averages trending higher (not flat to lower). <\/p>\n\n\n\n<p class=\"has-text-align-left\"><iframe loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto; max-width: 100%;\" src=\"https:\/\/4966a6ff.sibforms.com\/serve\/MUIFAOf9bvBTF4QnPQ3B5wTW2ecTOeQVIQsf40XycgIcKuG9iuHv5B-HvYxH3oMtYqk8CpnZgIWnQC7OEgNim5fzHUw9Kwzr6lrBD3uDSyXNidYJ15nkTzGwE82gHCC2f2dj1Q5Q3EB2MU2eroD8r3cIH_lmcDlmPFJKVRuLEh35163JTf5gt358GW6sNB_OFbMORhbj45FpQxd2\" width=\"540\" height=\"840\" frameborder=\"0\" scrolling=\"auto\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Using_Other_Indicators_to_Confirm_Signals\"><\/span>Using Other Indicators to Confirm Signals<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While the 200-day MA is an essential technical analysis tool, it&#8217;s important to use other indicators to confirm signals.<\/p>\n\n\n\n<p>One reliable technique is to look for crossovers of the 10, 20, and 50-day moving averages as potential signals for trend reversals or trend confirmations. For example, a crossover of the <a href=\"https:\/\/new.morpheustrading.com\/blog\/buy-50-day-ma\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/buy-50-day-ma\/\" rel=\"noreferrer noopener\">50-day moving average<\/a> above the 200-day moving average may signal a bullish trend reversal. On the other hand, a crossover of the <a href=\"https:\/\/new.morpheustrading.com\/blog\/10-day-moving-average-support\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/10-day-moving-average-support\/\" rel=\"noreferrer noopener\">10-day moving average<\/a> below the 20-day moving average may indicate a short-term bearish trend is shaping up.<\/p>\n\n\n\n<p>In addition to tracking moving average crossovers, you should also pay attention to volume patterns as an indicator of market sentiment. Generally, a healthy market is backed by higher volume &#8220;up&#8221; days and lower volume on the pullbacks. By tracking changes in <a href=\"https:\/\/new.morpheustrading.com\/blog\/minimum-trading-volume\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/minimum-trading-volume\/\" rel=\"noreferrer noopener\">trading volume<\/a>, you can gain insight into whether a trend is gaining or losing momentum and adjust your trading strategy accordingly. <\/p>\n\n\n\n<p>Overall, by combining technical analysis tools such as moving averages, volume patterns, and <a href=\"https:\/\/new.morpheustrading.com\/blog\/relative-strength\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/relative-strength\/\" rel=\"noreferrer noopener\">relative strength<\/a>, you can make more informed trading decisions that will increase their chances of trading success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Power_Up_Your_Trading_Performance\"><\/span>Power Up Your Trading Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The 200-day moving average is a powerful tool in identifying long-term market trends, and the current technical picture of the $SPY and $QQQ reinforces its importance. The 200-day MA accurately predicted the January shift from resistance to support, reinforcing it as a reliable indicator of the overall trend.<\/p>\n\n\n\n<p>As traders, it&#8217;s essential to stay on top of market trends and identify key indicators that can help you make well-informed trading decisions. <strong>The 200-day moving average is one such tool that you can&#8217;t afford to ignore. <\/strong><\/p>\n\n\n\n<p>By combining the 200-day MA with other technical analysis tools <em>and<\/em> signing up for our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\/\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\/\" target=\"_blank\" rel=\"noreferrer noopener\">flagship swing trading service<\/a>, you can take your trading performance to the next level.<\/p>\n\n\n\n<p>As a subscriber to <em><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>The Wagner Daily PRO<\/strong><\/a><\/em>, you&#8217;ll receive explosive swing trade alerts with a proven track record of more than two decades. When you join the MTG tribe, you also receive powerful, expert market analysis and top-notch trader education from our trading team with <em>45 years of combined swing trading experience<\/em>.<\/p>\n\n\n\n<p>Don&#8217;t miss out on this opportunity to power up your trading results. Start receiving your winning swing trade alerts and reliable market analysis with <em>The Wagner Daily PRO<\/em> swing trading service. Time is money, so <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\/\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\/\" target=\"_blank\" rel=\"noreferrer noopener\">join now<\/a><\/strong> and start trading with confidence today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you using the powerful 200-day moving average in your trading strategy? If not, it&#8217;s time to start paying attention. <\/p>\n<p>Discover how the 200-day MA has now become a crucial &#8220;line in the sand&#8221; for the S&#038;P 500 ($SPY) and Nasdaq 100 ($QQQ).<\/p>\n","protected":false},"author":1,"featured_media":19314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-19308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/19308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=19308"}],"version-history":[{"count":11,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/19308\/revisions"}],"predecessor-version":[{"id":19632,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/19308\/revisions\/19632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/19314"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=19308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=19308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=19308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}