SPX Monthly Chart with 12-Month MA Cross

There is a lot riding on tomorrow. The SPX crossing the 12-month moving average (MA) is a secular signal that Keystone uses to produce a secular call on the markets.  Note the drop into a secular bear market during the August crash. Price has remained there for five months forecasting weak stock markets ahead on a secular basis (weeks, months, perhaps a year or more). Today's clsoing print puts all that to question.

The 12-month MA is 1280.33 and the SPX closed today at 1281.06, 73 cents above. Tomorrow's print is extremely important to see if price collapses back down thru, or, if price closes a second day above the 12-month MA. Since this is a monthly chart and moving average, the only important date is the month end date closing print since that casts the data pont in concrete.  January ends on Tuesday, 1/31/12, so mark the calendar to check this chart and determine the secular market direction.

The day to day number is important nonetheless and tomorrow we see if the SPX can maintain this level, or not. The fight for the 12-month MA is a fight for secular bull-bear control of the broad markets.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read here.  Consult your financial advisor before making any investment decision.