The Battle Continues

So far so bad for the S&P 500's test of its 50-day moving average. As we noted yesterday, the developing squeeze between the 50- and 200-day MAs was going to resolve itself one way or the other, perhaps decisively. And so far, the bulls can't take much solace in the market's action around the 50-day line. This story isn't over, and, as always, investors can reverse field in a hurry.

Stripping away all the caveats, and pending this last hour of trading, the last couple days haven't been especially bullish. After closing below the 50-day yesterday (on above-average volume), and remaining there after rolling over early in the afternoon today, the burden of proof remains squarely on the bulls.

The big question is whether this downside breach of the 50-day line will prove short-lived (as the most recent such instance did in mid-April) or whether they'll take 'em lower from here...yet again.