NYA Weekly Chart with 40 MA Cross Secular Bear Market

Another of Keystone's secular signals is the NYA 40 week MA cross. The broad markets enjoyed a secular bull move up into the April 2010 top, then price fell under the 40 MA ushering in a bear market. Chairman Bernanke stepped in to save the markets from collapsing in August 2010 with QE3. Note the return of the secular bull market from September 2010 thru August 2011. Then, price collapsed under the 40 week MA indicating that the secular bear market has begun.

Note how the chart is very clean and respectful of the price versus 40 MA relationship, with only two stutter steps occurring, one in the summer of 2010 just before QE3 saved the markets, and the second in June 2011 (small teal circles). The market bulls are about 400 points below where they need to be.  The broad markets remain in a secular bear pattern so lower indexes are anticipated for the weeks and months ahead. Note the positive divergence which bounced price off the bottom in early October. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here or on any links associated with this site. Consult your financial advisor before making any investment decision.