Trading by Analyzing the S&P 500 Stocks above the 50 Day Moving Average

I have annotated three charts analyzing what the number of S&P 500 stocks trading above their 50-day moving average can predict about what's to come in the stock market.

Please click on the images to make them large and more legible.

And if you want to keep check on this chart, the symbol is $SPXA50 at stockcharts.com.





These charts tell me that odds are, the recent bear market rally is just that, a violent spike off of the lows. And we're going to see the market pull back in the near term.

The only data point calling that prediction into question is the $SPXA50 data from last October and November, when the number of S&P 500 stocks trading above their 50DMA remained at extremely LOW levels for ~six weeks without much of rebound.