Correlation Between Stock Market and SPY ETF

In examining SPY ETF, it is still looking strong as recent stock market sell-off brought SPY to its 50 day moving average at around $111.50. As long as it does not break $111.50 level, then the stock market is still considered strong and bulls are running the stock market. However, if SPY breaks its 50 day moving average level, then we will see more sell-off in the stock market and will move down to $102 range in SPY. If this occurs, then I would consider bears running the stock market and we should be taking defense trading actions with our portfolio.