Plan the trade and trade the plan, for sure. Moving averages, like other indicators, are backward looking. Could there be more downside? Sure. But we've been going down for a while now.
Moving averages are lagging indicators but, not totally useless as it follows the trend. Any moving average trading systems that take profits will always be superior to buy and hold (hope). Yeah, like the stockmarket cares wherever the trend goes? Trends persist far longer than you think. You have to just look at multiple stockcharts over the span of 5-10 years.
%% OK , something like that. Since the topic is SPY related. I got a good deal , insurance deal buying 12 month/prepay. Can do more ''moving'' + pay every month, but that's 2 expensive in gasoline\ oil, time + finance charges. I do 6 months for the best deal which is a lot less than 12 months. Plenty of market patterns like that insurance pattern, not that all of them do like newsworthy insurance buy of Mr Buffets %% /LOL. Most of the millionaires in stock market are buy every month for 40 years + market makers/specialists. You may do well between those extremes.