Monday, November 23, 2015

SPX S&P 500 and COMPQ Nasdaq Composite Daily Charts 150-Day MA Slopes Signal Cyclical Bear Markets but Battle Continues

The slope of the 150-day MA can be used to determine whether any stock or index is in a cyclical bull or cyclical bear market. The S&P 500, SPX, enjoyed the multi-year cyclical bull until mid-August when the 150-day MA slope rolled over ushering in a cyclical bear market. If you are bullish the markets you want to see the 150-day MA curl higher and resume the uptrend. This would likely set up all new all-time highs for the major indexes. If the 150-day MA continues drifting downward, the stock market remains in a cyclical bear market pattern and stocks will weaken.

The Dow Industrials, INDU, is in a cyclical bear market just like the SPX chart above. The Russell 2000 small caps, RUT, has rolled over the strongest and firmly in a cyclical bear. Tech stocks, the Nasdaq Composite, COMPQ, has flattened; you can give a slight edge to the bears for a cyclical bear market ahead but watch this closely. If the broad markets want to go higher it will first show up with the Nasdaq 150-day MA curling higher and resuming a new uptrend. The market bears would be toast.

If the Nasdaq 150-day MA continues to roll over and slope to the downside the market bulls are toast as all four major indexes would be in a firm cyclical bear market pattern for weeks and months to come. 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.

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