Trending Down

So far, it's a long overdue pullback. It could be something more, but we haven't seen enough damage yet to draw any further conclusions. Sentiment will continue to play a big part in how the market trades in the coming weeks. This is something to watch, as rising bullishness in a down-trending market can be difficult to reverse. So far sentiment does not suggest that is the case, but only time will tell if this condition develops.

Here are the current Seven Sentinels signals.



All four in this cart are in sell mode.



This chart shows $BPCOMPQ and $TRINQ in sell mode with $TRIN the only signal flashing a buy, although not by much.

The question now is, can the market find support soon or are we in for more pain. As I said before, I think sentiment will be key in this regard.

 

[JTH]

Great stuff, I'm curious if you've noticed if one or two of the 7 indicators tend to lead the way from a buy to a sell and vise versa?

 

[coolhand]

I have not noticed any particular indicator initiate a probably buy signal. I think NAMO, NYMO, NYHL, and NAHL tend to move in sync, although not issue buys/sells at the same time. They seem to trend together.

BPCOMPQ on the other hand, lagged on the last sell signal, but that's part of what makes this system robust and generally avoid whipsaws.