S&P 500 Update for the Week Ending July 14, 2009: Moment of Truth

The first chart provides the 15-week EMA and the 40-week EMA, which is still bearish (15-week EMA < 40-week EMA). The second chart utilizes two simple moving averages (10-week and 40-week), which has turned bullish. Which one has an unblemished record over the past decade? Answer: EMA. That is why I monitor the 15-week EMA and 40-week EMA for my investment signals. Keep-in-mind that since weekly data is involved, the signal is taken at the close of the week (Friday). Therefore, if we have a buy signal (15-week EMA > 40-week EMA) on a Friday, one would move into equities, preferably exchange traded funds (ETFs) on Monday. I will provide a list of my favorite ETFs on my next post. Have a great weekend!Note: To enlarge the chart, double-click inside of it.To enlarge the chart, double-click inside of it.