PAY ATTENTION TO THE DEVELOPING PATTERN IN THE MOST POPULAR MARKET TIMING INDICATOR $SPY $QQQ $IWM $DJIA
The most popular timing indicator in the U.S. stock market is the 200-day moving average. The indicator derives its power not from anything innate in the stock market, but from the legions of investors who believe in it. It often becomes a self-fulfilling prophecy. Investors ought to pay attention to a developing pattern. Let’s explore with a chart. Chart Please click here for an annotated chart of S&P 500 ETF SPY. Similar patterns can be observed in the charts of Dow Jones Industrial Average DJIA, Nasdaq 100 ETF QQQ, and small-cap ETF IWM. Please observe the following from the chart: