NYA chart shows the secular moves as judged by the price vs. 40 week MA relationship, one of Keystone's secular market indicators. A secular bear thru the Fall 2008 crash and March 2009 bottom. Then in May 2009, price crossed above the 40 MA signaling a secular bull market has begun. The secular bull ran until the April/May 2010 top where price dropped under the 40 week MA indicating a return to a secular bear market. The indexes languished last summer and in August were about to go over the falls. In rode Chairman Bernanke on his white horse, QE2, saving the equities markets. Thus, price moved back above the 40 MA confirming a new secular bull market from September 2010 to present.
Now take a look at that. Price is 8116. The 40 week MA is 8004. Difference is 112 points. If the NYA loses 112 points, the markets have returned into a secular bear market. Hang on tight folks, turbulence ahead as this sorts itself out. The secular bulls are hanging on by their fingernails. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.
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