The S&P 500 moved higher in the past 2 years and the trend was best identified by its 125 day moving average.
The problem is a break below a reliable trend/moving average is a sign of caution - as it happened recently.
It means the trend has changed and the longer is the time spanned by the trend and more meaningful is the change in trend.
Will the recent occurrence be different? Time will tell, of course
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Author, Profiting in Bull and Bear Markets
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