I was reading some material this evening from the folks at Elliott Wave, and I noted with interest they had plotted a 400-day moving average on the S&P. I hadn't ever really tried that before, so I gave it a shot:
What intrigued me is that this quite slow moving-average nicely contained the market action, both bull and bear, for the past decade. Most interesting to me of all, it held fast even during last summers fake-out.
Of course, the fact that it has recently crossed beneath this level for the first time in several years is what really got my attention. Again, this indicator doesn't turn on a dime, so it doesn't mean we couldn't see some market strength, but on the whole, I find the picture painted here extremely encouraging for the bears.
That's it for me today. Good night, Slopers!