SPY Recently broke 200 Day Moving Avg

[Foghatlive]

The problem with using one of the more common moving averages as a technical indicator is that you set yourself up to be exploited by specialists. If they plan on moving a stock up, they know that they can accumulate more of it by first moving it below an important moving avg # and inducing people to sell.

If you look at the last time the stock broke the 200 day ma, it popped right back up. Also notice the tremendous volume increase as it broke through on the downside. That means specialists are accumulating mucho inventory. They sure aren't gonna sell it for a loss.

My guess on this stock is that it's gonna sit where it is for while, maybe a few months, and, then go back up.