SPX Monthly Chart with 12 MA Cross Secular Bull Market

One of Keystone's secular signals is the cross of price versus the 12 MA for the SPX monthly chart. The SPX crossed up thru the 12 MA to signal a return to a Secular Bull Market pattern. The markets dropped into the Secular Bear Market pattern as the August 2011 waterfall crash occurred. The month-end print yesterday reversed this half-year bearish trend. February is critical since it will either confirm the switch back to the secular bull, or not.

Note how the markets flipped back and forth during the summer of 2010, resulting in failure and just when the markets were going over the falls, Chairman bernanke saved the day with QE2 in August 2011. Look at how, despite the indicator being a secular (long term think months and years) signal, the crosses are condensing over time with flips back and forth from secular bull to bear and back again occurring with greater frequency.

As of today, the bulls have a large long-term feather in their caps since markets are now in a secular bull again. February is key and will either confirm the secular bull, or cause markets to drop back into the secular bear; the month-end print occurs on Wednesday, 2/29/12, the leap day for this leap year. 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 finanical advisor before making any investment decision.