(Click on image to enlarge)

As a “technical investor” I blend the merits of long term fundamental investing with technical analysis. Along those lines, one of my favorite long term trend indicators is the 200-week moving average, along with its direction.

In the chart above, you can see the Dow has reacted a number of times at that level over the last 20 years or so. It actually goes a lot farther back, but the charts were harder to identify with all the data mashed together.

The “corona crash” has pushed the Dow below the 200 week average for the first time in almost 10 years.

(Click on image to enlarge)

The rally over the last week or so has now brought us back to retest this potentially critical level. What was once support could now be resistance. This could be a critical time in the market. Doesn’t mean we can’t break above and then still succumb to selling pressure either. The more time we can spend above this level, the better I would feel about the uptrend. The good news is the S&P 500 is already trading above its 200-week moving average. Hopefully, the Dow will follow.

Time will tell.