Below the 200-day moving average - life is different

"Nothing good happens below the 200-day moving average!" maybe attributed to Paul Tudor Jones, but often used.

The asymmetry of markets is strong, and markets will start act differently when prices fall below the long-term average. Is there a theoretical reason for this? No. It is a long-term technical and volatility starts to gain on the downside. This may not be a hard and fast rule, but you cannot go wrong with, at the minimum, using this as a basis for reassessment. There are other rules like the death cross of the 50-day moving average crossing the 200-day moving average. You may not get rich following rules of thumb but having points of reassessment is helpful. Disciplined watchpoints will reduce anxiety.