Ford Motor Co. (NYSE:F) broke up from a bull flag pattern on Aug. 11, which Benzinga indicated prior. Over the following days, the stock tested the 200-day simple moving average (SMA) as resistance before beginning to consolidate under the level.
The 200-day SMA is a bellwether that indicates whether a stock is trading in a bull cycle or a bear cycle. Ford, like many other big-cap stocks, has recently been trading near to the 200-day SMA, which may suggest the market as a whole is trying to figure out whether the bear cycle is over or whether the most recent rebound has been a bull run within a larger bear market.
