Tuesday, July 29, 2014


The RUT 150-day MA slope highlighted here over the last three weeks finally rolled over today. This is a major market event. The 150-day MA has sloped higher for over two years correctly prognosticating the cyclical bull market rally, until today. Yesterday's 150-day MA is 1154.09; today's is 1154.05. The slope of the 150-day moving average now falls by four pennies turning negative for the first time in years. As the astronauts said decades ago, "Houston, we have a problem." The bears pop champagne corks since the long awaited major market multi-year pull back and potential negative finish to the secular bear market 2000-2018 has likely begun.

The green box shows the slope of the 150-day MA moving higher as it has for month after month after month continually verifying the cyclical bull market rally, until today. The only way bulls can stop the failure is to jam markets higher immediately beginning tomorrow. The remainder of trading this week could not be any more important. If bulls plan on maintaining the cyclical bull rally, they must send markets strongly higher from now into the weekend. If the 150-day MA prints negatively tomorrow (Wednesday), then Thursday, and also Friday, the small caps are lost and the broad indexes will follow the small caps lower; markets will break down. This is an important day in market history for you are witnessing the exact inception of a cyclical bear market for the RUT index. We will know over the coming days if it sticks and is official moving forward. Keystone uses the 150-day MA slope on the SPX as the 100% confirmation that a cyclical bear market is occurring and worsening and the RUT 150-day MA slope rolling over paves the way forward for the SPX to follow in the future. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Sunday, 8/3/14, 3:03 PM: The RUT 150-day MA rolling over and turning negative and remaining negative for four consecutive days into the weekend is a significant market event. The Dow 150-day MA is 16484.08 for Thursday of last week and 16484.16 for Friday only 8 pennies of a positive slope (cyclical bull market) remaining. The market negativity will greatly increase if the Dow rolls over and joins the RUT in declaring a cyclical bear market for the weeks, months and potentially one or two years ahead. Watch the Dow 150-day MA slope for a vital clue on the market direction ahead.

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