Stock Market Sell Signal

Today I got the sixth sell signal of my long term indicators.  This marks six out of six indicators all pointing down, a rare occasion.  These include long term as well as short term indicators.  Both the Nasdaq and S&P have broken thru support, including a major up trendline on the Nas.  On a monthly (long term) basis the Nas indicates way overbought and past due for a correction.    The Nas could easily drop 400 points before stopping.  If the S&P breaks below 1800ish it could drop another 300 points.  Strap on your seat belts for a wild ride.

UPDATE 10/23 ...  the 6/6 sell signal has aborted today.  the short term indicators have turned bullish, so until they turn down again, there is no 6/6 sell signal.  I am thinking of adding longer term indicators ie; weekly and monthly charts (which at this point are still holding bullish).

Author: Geoff

Quick rundown: Grew up in Lombard, Illinois, went to Arizona State University, worked as a CPA with Arthur Andersen & Co, then Laventhal and Horwath, then Rolling Stones, then Heron International, then Goodby Berlin and Silverstein in San Francisco. Moved to the foothills in 1990 and traded futures and designed websites. Married to Kate Stewart, now living in Colfax, CA. We have six grandchildren. I enjoy camping in our RV, hiking, kayaking, fishing, droning and cross country skiing Also conga drumming, photography and dogs.