The S&P 500 end-of-month closing prices from May 2012 through April 2014 follow:

a. Compute the six-month moving averages associated with this series of data.

b. Plot the results of your computations in part (a). Describe any patterns, or trends, that are apparent.

c. According to your interpretations of the graph, in which direction do you think the market should move during the last half of 2014? (At the time you work this problem, you should be able to compare your prediction to what actually happened in the market.)

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