NYA NYSE Composite Chart 40-Week MA Cross

The drama concerning the important 40-week MA continues. This is one of Keystone's cyclical market indicators which forecasts whether markets are in a bullish or bearish trend for the weeks and months ahead. The green circle on the right hand side shows the ongoing fight day in and day out for the last three weeks (price keeps crossing back and forth across the 40-week MA unable to fully commit). For now, the NYA is 10848 above the 40-week MA at 10810 signaling a bullish stock market for 2015. The fight is likely not over as price is exhibiting sideways behavior and funneling through the blue trend lines.

Price jumped to 10932 last week at the top blue trend line ready to proclaim a bullish party guaranteed for 2015 but instead collapsed and is only 38 points from dropping back into a cyclical bear market. Watch this chart closely. If you are long the market and believe in upside for 2015, the NYA must stay above 10810, otherwise you will be bleeding money all year. If you are short the market wanting to see stocks collapse, you got nothing unless the NYA drops under 10810. 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.

Note Added on Tuesday morning, 2/9/15: NYA is 10826 above the 40-week MA at 10814 but only by a smidge and price was teasing under the key moving average yesterday. The drama continues.