NYA NYSE Composite Weekly Chart 40-Week MA Cross and NYSI NYSE Summation Index Weekly Chart

One of Keystone's important cyclical market indicators is the 40-week MA cross on the NYA. The market bears created a failure this morning under the 10888 threshold but the bulls fight back and prevent the negative cross from occurring--for now. Thus, the stock market remains in a cyclical bull market pattern with the NYA price above the 40-week MA but the action requires close monitoring moving forward. Failures have occurred since the October selloff but the central bankers, that control the stock market, come in with loads of liquidity to pump stocks higher and prevent the negative crosses from sticking.

The NYSI summation index dips under zero and in the past this identifies where stocks stage a recovery rally. The only question is will the bounce occur immediately or will stocks fall down the rabbit hole first and then recover. When the NYSI recovers and moves higher that will be the tell so monitor it closely in the days ahead.

Keep an eye on these market metrics. Equities are in major trouble if the NYA lsoes the 10888 level. Bulls are fine if they maintain the NYA above the 40-week MA. Watch for where the NYSI bottoms to provide insight into where the market bottom occurs. As this  message is typed, the NYA recovers to 10928 now 40 points above the danger line. 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.