The JSE top 40 index is currently trading at about the same level it was three years ago. But that fact masks the volatility that has been present, as well as the sectoral shifts that have occurred over that time.The top 40 has traded in a range between 42,000 and 49,000 over the past three years. That’s a 16% trading range. The 50-week moving average is generally a good indication of a bull market or a bear market. An upward-sloping 50-week moving average typically indicates a market with a bullish tone. On the other hand, a 50-week moving average that slopes downwards indicates weak momentum and is associated with a bearish market environment.The 50-week moving average on the top 40 index has been tracking sideways since early 2015. This has made the trading environment tricky, leaving one unsure whether to trade according to a bull or bear market strategy.The truth is that, at an overall index level, it is neither a bull nor a bear market. It has been a sideways, choppy market wi...
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