NYA NYSE Composite Weekly Chart 40-Week MA Cross Signals Cyclical Bear Market but Battle Continues

The NYA is under the 40-week MA for the last couple days a very bearish development. This cyclical market indicator has been highlighted before. Bears are on easy street as long as the NYA stays under the 40-week MA. Bulls recover and begin a new rally higher if the NYA moves above the 40-week MA now at 10895. NYA price is at 10805 about 90 points below. The stage is set.

The red rising wedge pattern is bearish and ominous. The collapses out of rising wedges can be quite dramatic. NYA peaked at 11250 so 10125 would be a -10% correction. The red lines for the indicators predicted the negative divergence spankdown. The indicators remain weak and bleak wanting to see lower lows on this weekly basis although the money flow wants a bounce in price now. It is also reasonable to expect a back kiss of the 40-week MA since it is a critical signal line.

Stocks were on the verge of collapse last October when the global central bankers colluded to save the day including the PBOC, BOJ, Fed, ECB and BOE. The other three stick saves in the chart were due to central bankers printing more money. The 40-week MA fails one more time. Will the central bankers save the day again? A Greece bailout deal appears on tap so stocks are headed for a strong upside open. Watch NYA 10895 like a hawk. 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 Friday morning, 7/3/15, at 10:18 AM EST: US markets are open about 45 minutes thus far. The battle intensifies. The NYA has remained below the 40-week MA but is now moving up for a critical resistance test. The 40-week MA is 10898. NYA is now printing 10891. This is for all the marbles going forward.

Note Added on Sunday, 7/5/15: The bulls came up to the critical 40-week MA at 10897 but did not have the juice to place stocks back on the bull side. The market bears spank price down from 10897 and the NYA closes at 10865. The battle continues. Bulls need NYA above 10.9K pronto otherwise each day it is not locks in a more sustainable downward path for markets for the weeks and months ahead. This same price battle at the 40-week MA occurred in October resulting in a flush lower for stocks should that fractal repeat.