Tuesday, January 27, 2015

NYA NYSE Composite Weekly Chart 40-Week MA Cross

This is one of Keystone's key cyclical market signals that is creating daily drama. Plain and simple, if the NYA is below the 40-week MA this year the stock market will be down on the year. If the NYA recovers above the 40-week MA and stays there, stocks will have a shot at printing a positive year. So the stakes are high and price moves above and below the key 40-week MA at 10812 today ending under the 40-week MA at 10812 signaling a cyclical bear market ahead (for weeks and months).

Keep watching it to see who ultimately wins. Once the NYA moves about 100 or 200 points away from the 40-week MA that will identify the direction ahead so bulls win above 10900 and 11000 and bears win under 10700 and 10600. The diamond pattern may be a continuation pattern where price breaks out to the upside or a trend change pattern where price may break down. The sideways nature of the chart is not tipping its hand. The RSI is sitting exactly on the bull-bear fence at 50. Diamond patterns are not reliable patterns to make a projection but the pattern does show a decision is at hand since the shape has played out. So within a couple weeks the winner should be identified. For now, the bears own the markets for the weeks and months ahead through 2015. This can quickly change to the bull camp if the NYA bounces only 30 points.  The drama continues. 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 on Thursday morning, 1/29/15: The NYA finishes yesterday's trade collapsing -1.7% to 10604. The market bears are drunk as skunks partying the night away as the path for 2015 becomes bleaker.

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