Keystone's SPXA150R Daily Chart Indicator

The SPXA150R shows the percent of S&P 500 stocks that are above the 150-day MA.  Above 80% are markets that are becoming overstretched. Above 85% is uber overstretched where it is smart to be bearish. Above 90% and shorting the market is preferable. The SPXA150R is at 84.60 just shy of the 85% level.  Thus, use the movement among the three zones, 80-85, 85-90 and 90+ to gauge the bullishness, and thus the corresponding bearishness that should be interpreted. At 84.60, the bulls need to jump back above 85 into the 85-90 zone and that will lead to more market upside. The bears need to push the SPXA150R under 80 and that will lead to far lower markets. A move through 80-85 will continue market sideways action.

Projection is for the 85 level to hold and for the bears to push it out the bottom at 80%. If a print occurs above 85, the bulls will be happy campers but with the negative divergence smack down, some additional weakness would be anticipated. Check it each evening this week to see how the chart proceeds. 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.