1987 Stock Market Crash & 200 Exponential Moving Average $SPY $DJIA
The 200 exponential moving average is a line of demarcation. If we are above it the stock can be choppy at worst but it will not crash. Using this simple indicator could have avoided every single bear market. In 1987 you had one day warning to exit all longs. Most did not….Most did not have a plan.
Even though we rallied the last several days do not be misled. This is an old bull market not representing all the realities in the economy. Trade with an exact plan. Know when to be long or out of the market…Know which shares to buy…when to exit with a profit and when to exit with a loss…Realize there will be countless trades along the way that will not work.
Past performance is not indicative of future performance