NYA NYSE Composite Weekly Chart; Battle at 40-Week MA Dictates Whether the Stock Market is in a Cyclical Bull or Bear

One of Keystone's key cyclical stock market signals (think weeks and months) is the NYA 40-week MA cross. This battle is important since it dictates whether the stock market will be a cyclical bull, or bear, into year-end and perhaps well beyond. Price stabbed down through the 40-week MA at 12713 last week but the bulls fortified positions and pushed the NYA back above to save the day. The NYA is at 12832, above the 40-week MA at 12713, so the stock market remains in a cyclical bull market pattern.

All Hades will break loose if the NYA loses the 12713 level; stocks will be falling down the rabbit hole and the phone's will begin ringing off the hook at the financial managers' offices. If the NYA remains above the 40-week, the bulls will be happy and joyous into the holiday season looking forward to nothing but prosperity and wealth ahead in 2020.

Price has teased the 40-week many times over the last couple years but the bulls, supported by the Federal Reserve and other global central banks, and President Trump, are quick to save the day and pump equities higher with more money-printing or happy trade talk. Which side will be the victor after this battle at the 40 ends? Right now, the bulls are happy about heading into year-end, but of course, this can change in a heartbeat this week. Simply watch the NYA 40-week MA cross for the answer. 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 Tuesday Morning, 10/8/19, at 5:55 AM EST: The NYA drops to 12768 in the Monday trade finishing at 12778. The 40-week MA is at 12743. The stage is set for a Tuesday battle. The bears were only 15 points from victory yesterday; can they push the NYSE Comp lower today and stab down through the 40 creating market angst for weeks and months to come, or, will the bulls maintain the cyclical bull market through the end of the year?