Are You Ready for the "Bear?"

The following S&P 500 chart illustrates the exponential moving average (EMA) strategy utilizes the 13-week EMA and and 34-week EMA.  It is simply an extension, so to speak, of the 15- and 40-week EMAs that I update on a weekly basis.  The only difference, of course, is time.  The 13- and 34-week EMAs are a little more sensitive, simply because of the shorter time frame. Also, I have included the PPO indicator.  I use the PPO indicator as my confirmation to the EMA strategy.  Notice what is happening to the EMAs and the PPO.  The 13-week EMA has turned down and nearing the 34-week EMA.  Also, the PPO has likewise turned down and closing in on "0." 

My advice is you better be very caution in the market near term.  The "Bear" might just be coming out of hibernation.