How reliable is a 200-day simple moving average in SPY ETF?

The 200-day simple moving average is a reliable indicator for determining a bullish or bearish bias in SPY ETF. See why I rate the fund a buy.

Is the 200-day SMA a good indicator for spy?

The 200-day simple moving average is a reliable indicator for determining a bullish or bearish bias in SPY. The 200-day SMA strategy has outperformed a buy and hold approach since 2000, especially during periods of large drawdowns.

What happens if spy closes a month below the 200-day SMA?

When SPY closes the month above the 200-day SMA you either go long SPY or you stay long SPY if you were long already. If SPY closes the month below the 200-day SMA you sell and go to cash or stay in cash if you were in cash already. This is a long only strategy. You don’t go short when using this strategy.