One of the puzzles for investors of exchange traded funds (ETFs) and other securities to solve is figuring out when the bear is going into hibernation, and when it’s coming back out. Keeping an eye on trends can give an assist when you’re trying to sort it out.

Roger Nusbaum explains that financial stocks are a determinant of the equity markets overall, and their fate is on a downward curve as of now. When the market is below 200-day moving average a problem is signaling a demand for stocks, and demand problems are a sign for a defensive stance.

When the market is below its 200-day moving average, it signals a problem with demand for stocks and demand problems are a sign for taking a defensive stance.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.