NYA NYSE Composite Weekly Chart; Battle at the 40-Week MA Determines Cyclical Bull or Cyclical Bear Market Ahead

One of Keystone's key market indicators, the NYA 40-week MA Cross, is making a major decision. The NYA is sitting on the key 40-week MA that determines whether the stock market is in a cyclical bull or bear going forward. It is for all the marbles. Watch which way it pivots tomorrow. If NYA fails below 12647, the stock market will likely collapse lower. If NYA remains above 12648 and moves higher, the bulls are gathering upside stream and more new all-time record highs will be ahead.

The NYA 40-week is deciding if the stock market will fall into a bear market pattern going forward, or not. Keystone's UPS 20/50-Week MA Indicator remains bearish predicting a cyclical bear market ahead (the UPS 20-week MA stabbed down through the 50-week MA six weeks ago). If the NYA fails, two key indicators will be declaring a bear market ahead.

The potential bear flag in the chart above jumps out at you. Leg one from 13650-ish to 12150-ish is 15-hundo points. The consolidation period occurs from February to present which has a sideways to sideways-up bias which is textbook for a bear flag (price hugs the 40-week MA the last few months). If leg two begins from 12850-ish, the downside target is 11350-ish (12850-1500=11350). The 200-week MA support is at 11180. 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 Thursday, 6/21/18, at 10:07 AM EST: The NYA fails at the opening bell now printing at 12577. The battle continues but the bears are in the driver's seat.

Note Added Sunday, 6/24/18: The NYA finishes the week at 12640 and the 40-week MA is at 12648. The battle continues.