Keystone's SPX 150-Day MA Slope Indicator Signals Secular Bull Market Today

A huge change occurs today. Keystone's 150-Day MA Slope Indicator has flipped from signaling a Secular Bear Market, for the last five months, to a Secular Bull Market today. The markets flipped to a Secular Bear Market on 8/2/11 as the waterfall crash was beginning. There was a stutter step back to the bull side on 8/3/11 but on 8/4/11 the Secular Bear market was confirmed and has stayed firmly in place--until today.

The indicator simply monitors the slope of the 150-day moving average (blue line) and a positive slope indicates a Secular Bull Market while a negative slope indicates a Secualr Bear Market. You can see the change from a positive slope up thru July, then the early August change to a negative slope that continued until the flat spot and slight turn up today. Note that the turn up today is so small you cannot even see a difference in that blue circle on the right margin.

Let's track the closing prints for the 150 day MA for the last four days and note how the slope turns positive; 1234.87, 1234.62, 1234.41, 1234.26, 1234.22, and today, 1234.27. Note how each print drifts lower and lower each day verfiying the Secular Bear Market until today where the 150 day MA prints at five pennies higher. One day does not seal the change in concrete. August had a stutter step before committing to the bear side. Give this indicator the next couple days and monitor the closing prints for tomorrow and Thursday. If they all inch higher, showing a positive slope, a Secular Bull Market is born.

This chart shows that if the market bears expect to push markets lower they need to do it now, and selling pressure in the markets should allow the slope to turn negative again. Watch it like a hawk this week. For now, according to this tool, the markets are in a Secular Bull Market. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 1/14/12 at 9:00 AM:  The week ends with the bulls winning the battle. Let's look at the last few numbers thru Friday: 1234.26, 1234.22, 1234.27, 1234.35, 1234.40, 1234.52, thus the change from a negative slope to a positive slope on 1/10/12 is clearly visible. A few more days will either confirm or negate this shift into a Secular Bull Market.