Wednesday, March 30, 2016

NYA NYSE Composite Weekly Chart 40 MA Cross

The SPX crossed above its critical 12-month MA at 2030 over the last few days which signals a cyclical (weeks and months) bull market ahead. The fight continues but the bulls have the firm upper hand. Another one of Keystone's key cyclical signals is the 40-week MA cross on the NYA now at 10158. The NYA pokes above ending at 10190 yesterday announcing the arrival of a cyclical bull market confirming the SPX 12-month MA cross signal. The jury remains out so you will have to watch this closely over the coming days and week or two.

The rally off the textbook Tweezer Bottom (purple circle) is huge from under 9K to 10.2K, +15%, in only seven weeks time. Price is testing both the 40-week MA and the upper trend line on the downward-sloping long-term channel. The indicators are long and strong pointing to matching and higher highs in price after any pull back occurs on the weekly basis. Note that the MACD line was not happy with the February bottom; it wanted to see another matching or lower low in price under 9K so that may have to be revisited in the future.

Watch the NYA 40-week MA at 10158 like a hawk; it will tell you a lot about market direction ahead. Each day that the NYA is above 10158 is another nail in the bear's coffin but if NYA drops under 10158, the bears will spring to life and take the stock market lower. 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 11:07 AM: The bulls are in control with NYA up to 10267.

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