SPX S&P 500 Daily Chart; Slope of 150-Day MA Signals Cyclical Bear Market

Happy Memorial Day. The cyclical stock market signals remain mixed. Ditto the stock market with the SPX chopping sideways through 2800-2950 since March. The 150-day MA continues sloping sideways to negative indicating an ongoing cyclical bear market for stocks since December. By definition, a price above the moving average will pull it higher; that is the bull's hope.

A 150 days is about 7 months so the current 150-day MA at 2744.63 prices in the December waterfall slide. Those weak numbers in December are likely maintaining the flat nature of the 150-day MA. In about 3 or 4 weeks, that December carnage will no longer be part of the 150-day MA calculation so the moving average would be expected to slope higher potentially sending the stock market back into a cyclical bull pattern.

Thus, if the bears are going to growl, they better start pushing stocks lower within the next month. Again, by definition, a price below the 150 will move the 150 lower. The bears see the goal which is the 2745 level. Bears must push the SPX below this price pronto to maintain the negative nature in the slope of the 150-day MA which signals a lingering cyclical bear market. The market tension increases.

You can check the 150-day MA slope for all your positions. If long, you want it to slope positively like the chart above into December 2018. If short, you want it to slope negatively like the chart above December to present (if moving flat it remains in the ongoing pattern).

Summing up Keystone's fave cyclical (weeks and months; intermediate term) stock market signals;
The SPX 150-day MA is sloping negative maintaining an ongoing 6-month cyclical bear market.
The SPX is above its important 12-month MA at 2785 signaling a cyclical bull market.
The SPX dropped only 150 points from the 2950-ish top recently a -5% pullback nowhere near a -10% correction level or -20% bear market.
The NYA remains above its 40-week MA signaling a cyclical bull market.
The UPS 20/50-week MA cross is negative signaling a cyclical bear market.

So the market signals are mixed. All of these signals will eventually line out in the same direction verifying the path ahead. During recent years, due to the non-stop central banker market intervention, the signals have all been in the bull camp. The stock market wagon is starting to wobble. The NYA is teetering so pay attention to that 40-week MA since it will tell you the path ahead for the intermediate term. Pay attention to the 150-day MA slope as well as explained above.

If the SPX loses the 12-month MA at 2785, the stock market is toast. If the S&P 500 then loses the 2745 in the chart above, there will be nothing but blood and carnage on Wall Street. If the SPX remains above the 12-month MA at 2785, the bulls are not worried about any market pullbacks. 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.