Don't Panic Redux

You may remember a post from nearly a year ago, found here. In it, I explained how you can know for sure when the market is in an uptrend and when it is in a downtrend by watching what the 20 week moving average is doing compared to the 40 week moving average.

The 20 week moving average is very close to crossing from below to above the 40 week moving average now. I'll include some pictures below.

This picture shows a 2 year time frame. I've circled where the averages crossed at the end of 2007 to start the down trend and where we are now.


This picture is the last year of time (so the last half of the above picture), which makes it easier to see that the averages are close to crossing again.


Just wanted to point out that we might be changing the major trend.