The SPX crossing above the 12-month MA at 2033 at the end of March was a serious blow to bears. The SPX 12-month MA cross is one of Keystone's key cyclical signals; it is "the cliff." Bad things happen to the stock market if the 12-month fails and that can be seen last August and December once this important moving average was ruptured.
But the bulls have returned to glory pushing the S&P 500 back above the 12-month signaling a cyclical bull market ahead. Note how price came down to tap the 12-month MA this month, showing it the respect it deserves, and then price ventures higher printing a new high for the year at 2095. Bears need the SPX under 2033 pronto or they got nothing on this cyclical (weeks and months) basis. The cyclical bear ended a couple weeks ago and is now in a cyclical bull market pattern as per this indicator.
If you are a longer term trader, you need to follow the 150-day MA slopes for the SPX, INDU, COMPQ and RUT, the UPS 20/50-week MA cross, the SPX 12-month MA cross and the NYA 40-week MA cross to figure out the cyclical market path ahead. All seven indicators are charted this evening so scroll back to review the charts or type the ticker symbol into the search box at the right to bring up the chart.
The SPX, INDU and COMPQ 150-day MA's are sloping higher, the SPX is above the 12-month MA and the NYA is above the 40-week MA all cyclical bull market signals. The RUT 150-day MA is sloping negatively and the UPS 20/50 cross is negative maintaining cyclical bear market signals. When all seven of these signals are in the same camp, you will be completely sure that stocks have chosen that direction forward for the 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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