SPX S&P 500 Monthly Chart with 12-Month MA Cross; Equities Fall into Cyclical Bear Market

One of Keystone's key stock market signals is the SPX 12-month MA cross which dictates whether the stock market is in a cyclical bull market pattern or a cyclical bear. The 12-month MA is a cliff-edge for equities. Yesterday, the SPX fails below the 12-month MA at 2744 ushering in a cyclical bear market for weeks and months ahead.

This is extremely serious. The 12-month MA is the edge of the cliff and a failure creates the potential for a crash event to occur in the stock market. The bulls must push the S&P 500 back above 2744 as fast as possible, otherwise, the stock market will crumble into oblivion.

The S&P 500 price is at 2728 which is 16 points below the critical 40-week MA. The bulls have work to do if they want to regain the good times. Three hours before the opening bell for the Friday, 10/12/18, session, as this message is typed, the S&P futures are up +26. A move for the SPX of this magnitude would place the S&P at 2754 above the 12-month MA. It would signal that the bulls fell off the cliff-edge, but grabbed a branch, and now pull themselves back up onto the cliff.

For now, this is serious technical damage to the stock market and equities will trend lower for weeks, months and perhaps years ahead as long as SPX price remains below the 12-mth MA. 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 4:23 PM: The SPX ends the week at 2767 back above the critical 12-month MA at 2747. The market bulls avoid Armageddon by 20 points. The cyclical bull market remains in play (according to this tool). Note that the NYA 40-week MA cross signal indicates a cyclical bear market below 12802. One of these two indicators will flinch, joining the other, and firmly telling you the stock market direction ahead for the intermediate term.