200 moving average on a weekly chart, of Nasdaq 100 –
For S&P 500, or Dow Jones you’ll see similar chart. This moving average acts as a huge support, and whenever it breaks for long period (for S&P it was broken temporary on Covid-19 crisis at March 2020), it means we’re on a deep recession.
Zooming in the last decade, and it worked perfectly –
Going backwards to the first millennium’s decade and it was broken for long periods during the dot.com (2001) and subprime (2008) recessions –
Now the interesting part – something telling me we’re on similar point to this point at 2001 –
…thus mid-term rally and then diving down into a deep recession.
Anyway it’s a great indicator for long and mid term investors.