BROAD STOCK MARKET TRADE ALERT (2:00 pm EDST)
A I mentioned in yesterday's blog on the broad stock market, we are now at the center of a significant reversal zone, and equities are rising sharply into it. Yesterday the DOW and S&P 500 made new all-time highs while the NASDAQ did not - giving us an intermarket bearish divergence signal. That signal is persisting today as the DOW and S&P 500 push even higher with the NASDAQ remaining below its all-time high (8,176). At the time of this writing (around 2pm EDST) these indices appear to be rounding over. It looks like a good time to sell short. We can base our stop loss here on the NASDAQ breaking its all-time high or all three indices making new all-time highs next week. Note that we expect any correction now to be short-term (but likely steep) and not go below the June 3 starting points of the new medium-term cycles in all three indices (24,680 in the DOW, 2,729 in the S&P 500, and 7,292 in the NASDAQ), but there is a small chance the market will turn bearish and breach those lows. This is another good reason to be short right now. Selling short the broad stock market today.
A I mentioned in yesterday's blog on the broad stock market, we are now at the center of a significant reversal zone, and equities are rising sharply into it. Yesterday the DOW and S&P 500 made new all-time highs while the NASDAQ did not - giving us an intermarket bearish divergence signal. That signal is persisting today as the DOW and S&P 500 push even higher with the NASDAQ remaining below its all-time high (8,176). At the time of this writing (around 2pm EDST) these indices appear to be rounding over. It looks like a good time to sell short. We can base our stop loss here on the NASDAQ breaking its all-time high or all three indices making new all-time highs next week. Note that we expect any correction now to be short-term (but likely steep) and not go below the June 3 starting points of the new medium-term cycles in all three indices (24,680 in the DOW, 2,729 in the S&P 500, and 7,292 in the NASDAQ), but there is a small chance the market will turn bearish and breach those lows. This is another good reason to be short right now. Selling short the broad stock market today.
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