SPXA150R S&P 500 Percent of Stocks Above 150-Day MA Daily Chart

After the close check the print for this one to determine market status. Also, the Turn Signal page on this site will be updated; this is Keystone's SPXA150R Indicator. Keystone separates this elevated area into four parts; under 80, 80-85, 85-90 and 90 and higher. The move into the 90 and higher zone is further evidence of an overbot market with stocks priced to perfection. Over 90% of the stocks in the S&P are over their 150-day moving averages, this is uber bullish, and although it may continue a bit, a reversal should be planned for, and planning begins with further increasing short positions against this market bull move. Thus, consider a 90 plus number to be uber bearish as far as forecasting goes since it is a contrarian indicator.

The way Keystone uses these levels, is that once price is inside a zone, the move out is important. Once the indicator crossed up and over 80 that verified the market bullishness but the drop back under 80 signaled the bear growling, which was the small late January pull back, but then markets climbed higher again, and once thru the 85 level, signaled further market bullishness. The wait is then which side of the 85-90 zone will price exit? Price decides to exit on the upper side now printing above 90. Thus, check the number after the close today and if the SPXA150R is 90 or higher, the market bulls are maintaining control of the markets and do not plan to give up. If the print is under 90, this signals that the markets should weaken and sell off moving forward, as long as the indicator stays under 90 and heads lower.

In a nutshell, the 90 plus level now is a very attractive place to bring on or add to market shorts, although, as always, scale in, since the bulls could always try to keep things afloat thru the end of the month. Markets appear ready to fall now and only need a catalyst. 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.