FYI: The 200-day moving average did it again, raising serious questions about whether anyone should still pay attention to it.
This popular U.S. stock market indicator flashed a “sell” signal on the precise day of the market’s post-Brexit-vote low (see chart above). The 200-day moving average is used by many trend followers as a confirmation of a major bear market, but in this case the market’s decline was over right when the moving average urged investors to get out.
Regards,
Ted
http://www.marketwatch.com/story/this-popular-stock-market-indicator-just-suffered-another-major-fail-2016-08-12/print
