Market Sell Signal
With today’s close of over a 300 point decline, I got a sell signal on the daily charts for the Dow, S&Ps, and Nasdaq. The markets are deeply oversold. The weekly charts in all 3 are rolling over and the MACD on the daily charts are negative. I am expecting some kind of bounce in the next 1-7 days working off the oversold condition. If that bounce occurs as expected I should get 2 negative divergences on the daily charts. I think we could bounce possibly to 2075-2080 area. The first gap on the SPY is at 201.92 today’s close was 204.98, so I would look for a bounce and I would look to get short the market. Oil today was down over 1.30 and oil need to hold the 46.93 number. If oil closes below that number then I would get a sell signal on the daily charts and a very high probability for oil to make new lows for the year. Oil could even trade down to the 35-38 level if not even lower. Gold was down 6 dollars today closing at 1160. I am looking for Gold
to try and set up on the daily charts where I would look to short.