Keystone's 150-Day MA Slope Indicator Signals Bear Market Ahead

On 6/4/12, Monday, the SPX 150-day MA slope slipped negative signaling a bear market ahead. This is the first change since the slope went positive on 1/10/12 signaling the bull market rally. Starting five days ago the 150-day MA has printed the following closing numbers; 1317.67, 1318.06, 1318.60, 1318.85 (Friday), 1318.80 (Monday). Note how the 150-day MA continued higher, day after day, from January until yesterday where the first dip negative occurs.

In the chart, simply pay attention to the blue line, ignore the actual price candles. A bear market was in place last Fall when the ECB saved the day with LTRO1, and saying that LTRO2 would follow closely behind, in December 2011. This launched the equities rally into high gear and on 1/10/12 the 150-day MA slope turned positive ushering in the bull market all year--until now. A couple-few days of stutter-stepping may be on tap but watch this closely in the days ahead. If the 150-day MA continues to slope down here forward (for example, day after day, 1318.80, 1318.70, 1318. 58, etc....) a bear market is in place and expect lower equities prices moving forward.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.