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

A significant market development occurs today that will affect markets on an intermediate term moving forward. The slope of the 150-day MA turned negative today. This is one of Keystone's Cyclical Signals and forecasts the start of a Cyclical Bear Market today. Since the signal just occurred, check the indicator each day next week to verify that the slope remains negative moving forward.  The neon green arrow shows how the slope of the 150-day MA continued higher this year. The wine was flowing like water, each day was a drunken bullish orgy with the markets moving higher with no worries. That changed today. The red arrow shows the future direction, bearish.

If you recall, Keystone highlighted this indicator on 6/4/12 when the slope went negative, but, alas, the very next day the slope went positive again and the signal was a one-day fake-out. The bulls then resumed the upward rally move.  Is today another fake-out move or the real deal? Probably the real deal. The 150-day MA is 1384.67.  You do not care about the price candles shown on the chart, the only thing you are looking at is the blue line. For the last five days the following prints occur for the 150-day MA; 1384.43, 1384.49 (up 6 cents), 1384.60 (up 11 cents), 1384.71 (up 9 cents), and today, 1384.67 (down 4 cents).  Bingo.

Thus, the magic number you are watching is 1384.67. Check the 150-day MA on Monday and as long as it prints under 1384.67 the market bears are rockin' and rollin'. If the moving average prints above 1384.67, then the move is a fake-out and the bulls will be back in biz. The bears are doing some serious damage and now a coveted Cyclical Signal has joined their bear camp and it is a signal that may last weeks and months. Keep an eye on Keystone's UPS 20-week MA and 50-week MA Cross Indicator that is about to show a cross of the 20 down thru the 50.  If this occurs, the cyclical bear picture will have serious street cred and markets will be in big trouble 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.