BROAD STOCK MARKET TRADE ALERT (3:00 pm EST)
The DOW and S&P 500 both made new all-time highs early today, but the NASDAQ was not able to make a new high, and all three indices look like they will be closing in the bottom part of today's range. This is a strong bearish signal as we approach the end of the current reversal zone. Enthusiasm for the tax reform bill may be over. It looks like a good time to sell this market short. We can set a stop loss on this trade based on the NASDAQ making a new weekly high. (It came close today so traders should be aware that we could easily be stopped out of this trade as early as tomorrow if the market doesn't turn here. But this close stop would make any loss minimal should the market rally.)
Going short in the broad stock market today with a stop loss based on the NASDAQ making a new weekly high (i.e closing above 6915).
The DOW and S&P 500 both made new all-time highs early today, but the NASDAQ was not able to make a new high, and all three indices look like they will be closing in the bottom part of today's range. This is a strong bearish signal as we approach the end of the current reversal zone. Enthusiasm for the tax reform bill may be over. It looks like a good time to sell this market short. We can set a stop loss on this trade based on the NASDAQ making a new weekly high. (It came close today so traders should be aware that we could easily be stopped out of this trade as early as tomorrow if the market doesn't turn here. But this close stop would make any loss minimal should the market rally.)
Going short in the broad stock market today with a stop loss based on the NASDAQ making a new weekly high (i.e closing above 6915).
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