Keystone's most important cyclical (weeks and months) indicator is the SPX 12-month MA cross. Very simply, the US stock market is in a cyclical bull market pattern since the SPX is above the 12-month MA at 2783. The stock market will drop into a cyclical bear market pattern if the SPX loses 2783 (begins today at 2802 with S&P futures down -20 four hours before the hump day opening bell).
The 10-month MA at 2787 serves as an early warning signal for the stock market. If 2787 fails, the 2783 support will be tested. Usually, the 10-month is further above the 12-month but since there is only 4 points of difference, treat the whole range of 2783-2787 as the major stock market line in the sand. It is over for the US stock market if the SPX 2783-2787 level fails.
The stock market stage is set for drama on Wednesday, 5/29/19, a battle royale between the NYA and SPX to determine the direction of the US stock market ahead. The NYA is below its 40-week MA signaling a cyclical bear market going forward but the SPX is above the 12-month MA signaling a cyclical bull market ahead. Either the NYA will pop higher and return to the cyclical bull market pattern and guarantee equities moving sideways to sideways higher going forward, or, the SPX will fail at 2783-2787, sending the stock market into Hades. 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 4:15 PM EST: The SPX finishes the Wednesday, 5/29/19 session down 19 points, -0.7%, to 2783. The 12-month MA is at 2781-2782 so the bulls hang on by the skin of their teeth. The S&P 500 fell to 2766 intraday but recovered. The battle continues tomorrow.
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