Monday, January 25, 2016

NYA NYSE Composite Weekly Chart 40 MA Cross Cyclical Bear Market

The NYA 40-week MA negative cross occurs in June-July signaling bearish markets for the weeks and months ahead as Keystone highlighted at the time and turned out to be a prescient call on the broad market. Stocks crashed in August. A cyclical bull market was in place with price above the 40-week MA from 2013 into early 2014. Price teased a drop through this important 40-week moving average in early 2014 but instead price spiked higher and never looked back rallying for the next 16 months into the May 2015 high.

Keystone described the fits and starts from late 2014 into early 2015 as price danced on each side of the 40-week MA. The price bounces off the low points in the chart are due to central banker's stepping in to save the day with stimulus. The red rising wedge pattern (bearish) forms which sounds the death trumpet for the NYA along with negative divergence and overbot conditions; price collapses off the peak.

The NYA committed to the downside last summer when price lost the 40-week MA signaling bearish markets for the weeks and months ahead. The stock market remains in a cyclical bear pattern until the NYA moves above the 40-week MA. 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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