SPX S&P 500 Daily Chart; 150-Day MA Signals Ongoing Cyclical Bull Market

The slope of the 150-day MA is an extremely valuable tool in assessing stock price performance. If the 150-day MA is sloping higher, from the lower-left to the upper-right, the bulls are in their glory, high-fiving each other each day, drinking Fed wine, and celebrating higher equity prices. If the 150-day MA is sloping downward, the bears are growling and slashing at bull flesh as cyclical darkness takes hold.

This tool is useful for all of your positions. If you are long a ticker, check its 150-day slope. You want it to be sloping upwards. If it is not, you will lose money on your long trade. Conversely, if you are short a stock, but its 150-day MA continues higher and higher, you will lose your shirt.

Do you think that the SPX price respects the 150? As Gen-Z'er Billie Eilish sings in her Bad Guy song, "Duh." Obviously, it does. Look at all the touches and reverses over the last year. Price is strongly supported by the 150-day MA, now at 2870, for the last month. Stocks would be in serious trouble if it ruptures. Bulls are fine above. The cyclical bull market was in full swing into last September. Then the Q4 2018 stock market crash occurs. The 150 continued sloping higher but then in mid-December, that was the start of a cyclical bear market for US equities.

Despite the bigtime rally off the bottom, that was created by the Fed and other global central bankers when they panicked on 1/3/19, printing money like madmen, the cyclical bear was maintained until May of this year. The cyclical bull market pattern is then in full swing again from May to present. Watch the 150 not only as key support for the broad stock market, but it will also tell you the cyclical (months and years) path ahead for stocks. By definition, if price drops below 2870, it will start curling the 150-day MA downwards. 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.