SPX S&P 500 Daily Chart; 150-Day MA Slopes Negative Ushering in Cyclical Bear Market

The bears keep pounding the bulls day after day and another key signal turns bearish. Keystone's 150-day MA Slope Indicator turns negative ushering in a cyclical bear market. Do you see the blue line how it leveled off and now slopes negatively? During the entire bull rally, the 150-day MA slopes positively signaling that every day is a party. The negatively-sloping 150 spells long-term sickness and trouble for stocks. (As an aside, you can check the slope of the 150-day MA for all of your ongoing trades. If you want to hold those positions for a few weeks and months, the slope of the 150 will tell you if you will be a hero, or a zero.)

The cyclical bear signals are mounting. The NYA failed through its 40-week MA ushering in a cyclical bear market. The SPX lost the 12-month MA ushering in a cyclical bear market. The SPX 150-day MA slope turns negative ushering in a cyclical bear market. Using and paraphrasing a baseball analogy for the bulls, 'three strikes and yer out'.

Watch the slope of the 150 going forward since it will help you forecast the stock market direction ahead. INDU, or DJI, the Dow Jones Industrials, 150-day MA just sloped negative as well ushering in a cyclical bear for the blue-chips. Ditto COMPQ, NDX, RUT, NYA, TRAN and SOX. That is ugly. All these major indexes have negative 150-day MA slopes spelling sick bearish markets for months to come. Bulls need to turn the 150's up as fast as possible and that will only happen if a strong relief rally occurs from now through year end into the new year.

If all the above major indexes maintain their negative 150 slopes, shorting all rallies is a prudent strategy going forward. 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.