By Jeff Clark in Growth Stock Wire:
Prepare to get whipped, again.
As we approach the end of August, it's time to take another look at my favorite long-term trending indicator – the monthly chart of the S&P 500 plotted against its 20-month exponential moving average (EMA).
When the S&P is trading above the 20-month EMA, stocks are in a bear market. When the index is trading below the line, the bear is in control.
The indicator triggered a bear-market signal at the end of June. Then it reversed and triggered a bull-market signal at the end of July. This sort of whippy action is rare. But as I wrote at the time, it's...
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