The Weekly

No trades this week, but some interesting developments took place. The SPY lost 2.4% for the week. These down moves were sufficient to take the S&P 500 below its 200-day moving average as of the Thursday’s close. Last time this happened was in June, back then the S&P 500 stayed below its 200-day moving average for only two days.

On Friday, another moving average got broken – the 20-week. Currently only the monthly long term moving averages are intact, but let’s not forget that they are updated only on a monthly basis.

All in all, technical trend indicators are starting to confirm this down move and whoever is taking investment decisions based on some of them should strongly consider exiting the market. The SPY has lost only 6% so far from its 2012 peak, so there is a long way to go if this turns to be a significant correction, let’s forget a bear market.

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