ETFs have crushed Wall Street’s go-to stock-market indicator
By Bullbit Editorial · March 28, 2026
WhatETFs have outperformed the S&P 500's 200-day moving average, a key stock-market indicator, in recent years.
WhyThe S&P 500's 200-day moving average has been a victim of its own success, as investors have increasingly turned to ETFs for diversified exposure.
SignalThe 200-day moving average has failed to accurately predict market downturns, with the S&P 500 experiencing significant declines despite the indicator remaining above the threshold.
TargetETFs have become a popular alternative to traditional stock picking, with **$8.5 trillion** in assets under management as of 2026.
RiskInvestors should be aware that ETFs can be highly volatile and may not provide the same level of protection as a diversified portfolio of individual stocks.