BROAD STOCK MARKET TRADE ALERT (2:30 pm EDST)
We are now at the dead center of our current strong reversal zone for equities (April 20 - 29), and we are seeing a lot of bearish divergence signals in the broad stock market. The DOW made an all-time high on April 16, but it was not able to exceed that last week. Today the DOW peaked just short of last week's high and is now falling sharply into "red" territory. The S&P 500 did make a new all-time high on Friday, but today it peaked just short of that high and, like the DOW, may be falling from there. The NASDAQ is clearly the most bullish index today as it makes a strong new weekly high, yet it is still below its all-time high from Feb. 16 (14,167).
All of these bearish divergence signals in the center of a strong reversal zone is creating a good spot for us to sell short. We can do this with a close stop loss based on ALL THREE indices making new ALL-TIME highs. That would mean the DOW breaking above 34,257, the S&P 500 above 4,195, and the NASDAQ above 14,168.
It looks like the DOW may be leading this correction, but shorting any one of these indices with an index fund should work as this could be a major turning point in the market. I am selling short the broad stock market today with a stop loss based on ALL THREE indices (DOW, S&P 500, NASDAQ) making new ALL-TIME HIGHS as stated above.
We are now at the dead center of our current strong reversal zone for equities (April 20 - 29), and we are seeing a lot of bearish divergence signals in the broad stock market. The DOW made an all-time high on April 16, but it was not able to exceed that last week. Today the DOW peaked just short of last week's high and is now falling sharply into "red" territory. The S&P 500 did make a new all-time high on Friday, but today it peaked just short of that high and, like the DOW, may be falling from there. The NASDAQ is clearly the most bullish index today as it makes a strong new weekly high, yet it is still below its all-time high from Feb. 16 (14,167).
All of these bearish divergence signals in the center of a strong reversal zone is creating a good spot for us to sell short. We can do this with a close stop loss based on ALL THREE indices making new ALL-TIME highs. That would mean the DOW breaking above 34,257, the S&P 500 above 4,195, and the NASDAQ above 14,168.
It looks like the DOW may be leading this correction, but shorting any one of these indices with an index fund should work as this could be a major turning point in the market. I am selling short the broad stock market today with a stop loss based on ALL THREE indices (DOW, S&P 500, NASDAQ) making new ALL-TIME HIGHS as stated above.
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