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).
