Mark Hulbert: This popular stock market indicator just suffered another major fail

The 200-day moving average did it again, raising serious questions about whether anyone should still pay attention to it.

This popular U.S. stock market indicator flashed a “sell” signal on the precise day of the market’s post-Brexit-vote low (see chart above). The 200-day moving average is used by many trend followers as a confirmation of a major bear market, but in this case the market’s decline was over right when the moving average urged investors to get out.

See also: S&P 500, Nasdaq, Dow log records on the same day for the 1st time since 1999

Of course, if this were the 200-day moving average’s only misstep, followers should be willing to forgive it.

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