Keystone's SPXA150R Indicator

This chart allows market short sellers to sleep easier at night. Keystone's SPXA150R Indicator uses the 80, 85 and 90 levels as a guage for how a rolling top is progressing for markets. This chart now shows nearly 90% of the S&P 500 stocks are above their 150-day MA. This is where market tops occur and at these values and higher there is typically no reason to worry about holding shorts. Markets may roll along sideways a while longer but this level of 88 and especially above 90 is a highly attractive area to short the broad markets.

Keystone's indicator attempts to assign order to the price movement in this market bullish zone. When price moves above 80, this signals a Bullish tone moving forward. This occured in February. If the price drops under 80 then the markets are selling off, if the markets head above 85, the bulls are running. The SPXA150R punched above 85 which is Strongly Bearish; the higher price goes the closer it comes to reversing hard which means you should view the broad markets more bearishly.

So at this area, if price falls back under 85 the markets will be selling off, if the price moves above 90 this enters an Uber Bearish zone and the markets would be susceptible for a stumble lower at any time. Thus, as a tool to gauge broad market direction, check this chart after the close each day forward to see if 85 or 90 is attained first. Bulls want to see 90 since that at least keeps them afloat a while longer. Bears want to see sub 85 since that will signal broad market selling occurring. Note the red lines showing firm negative divergence across the board which should spank price down at any time, thus, a chart to help the bears sleep easier. 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.