Friday, November 11, 2016

NYA NYSE Composite Weekly Chart; 40 MA Maintains Cyclical Bull Market

About a week or so ago, Keystone posted the NYA chart announcing the breach of the critical 40-week MA which ushers in a cyclical bear market. Of course, as seen by the prior crosses, it typically takes a few weeks of battling before a resolution and firm direction is chosen. Price bounces off the 40-week MA this week so the bulls punch the bears in the face ruining their hopes of a cyclical bear market ahead. The stock market remains in a cyclical bull market pattern.

However, the 40-week MA will fail, it is only a matter of when. Keep watching the 40-week MA cross since it signals major market trouble ahead when it fails. The UTIL 50-week MA at 650 failed this week and portends ominous times ahead for stocks in the weeks and months time frame. It will be interesting to see if the NYA rolls over and loses the 40-week, or, if utilities recover, and UTIL regains the 50-week MA. Watch these two parameters to feel comfortable about positions held in the intermediate term (weeks and  months). 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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