Keystone's SPX 12 Month Cross Secular Signal Indicates Secular Bull Market

The big move today launched the SPX above the 20, 17 and 12 month MA's.  The 12 month MA cross is one of Keystone's Secular Signals which has been indicating a Secular Bear Market is in play.  But, today, the SPX closed at 1285, above the 12 month MA at 1278, shifting the sands back in favor of Secular Bulls. But, do not be too quick to claim the bull orgy an unstoppable force.

The monthly chart obviously requires only one data point per month and the next print is 10/31/11, Monday, on Halloween. Thus, do you think the SPX can stay above 1278 thru Monday's close to signal that the Secular Bull market has returned? You will know the answer to this question Halloween night as you sneak candy from your children's stash when they are not looking.

Another interesting note. Price did not close above the 10 month MA, at least not yet.  The 10 month MA is 1290 so intraday price moved above, but the SPX leaked into the close. Some of the old-timer's consider the behavior of price versus the 10 month MA very important. Thus, if bullish, you will breathe a lot easier if the SPX takes out the 10 month MA to the upside.  If market bearish, you obviously want to push the SPX back down to close under the 1278 over the next two trading days.

Lastly, watch the SPX 150 day MA Slope Secular Signal closely. The 150 day MA tonight is 1263.79 and yesterday it was 1263.98, thus, the 150 day MA continues to slope negatively favoring secular market bears, but only lower by 19 measly pennies. Market bears want to continue to see the 150 day MA slowly drip lower and lower day after day.  Market bulls will gain a big feather in their caps, and verify that further bullishness is ahead for the broad markets, if the 150 day MA slope turns positive, which means a number of 1263.80 or higher tomorrow. Keystone will update the Secular Signal page on this site accordingly.