S&P 500 Timing Analysis
The 200 day moving average of the S&P 500 index is an excellent indicator to use for protecting your assets. The Nasdaq lost 80% of it's value when the dot com bubble burst during 2000-2003.
Needless to say, you never want to be caught in that kind of downdraft. If you simply get out of the market when the S&P 500 crosses below it's 200 day moving average
you will be protected from disaster. This works great for 401K's where companies often impose a limited number of trades per year.
Here is a link to a 3 month chart of the S&P500 along with it's 200 day moving average in green.
If the slope of the green line is nearly horizontal at a crossing, the odds of repeated crossings, called whipsaws,
are higher so you should probably wait a week or so in those cases to prevent excessive switching.
Take a look at the 5 year chart
to see how this simple strategy protects you from major losses while assuring you are in the market for the major up trends.