From the desk of Willie Delwiche.
In 2021, every month except April has seen the S&P 500 testing its 50-day average. Only after the initial test in February did the index fall further below that average than it is doing in September. The pattern so far this year has been tests of the 50-day that ultimately resolve higher. Whether that happens this time remains to be seen. With investors re-evaluating their bullish views on stocks, bond yields starting to rise and the action beneath the surface showing increasing vulnerability, we want to see evidence of upside resolution rather than just assuming it is on its way.