Trouble ahead?
The market had a difficult time deciding which direction to go Monday. I believe there were over 20 crosses above and below the flat line for the Dow yesterday.
While I feel my indicators are very good at finding long and intermediate term market trends, it has tended to be a bit flakey making short term calls. The signals have tended to be early. If that's the case we could see more upside but I hate to fight the indicators. They are currently sending a red flag and if you go through the red flags enough, eventually you will be blindsided. So, I will remain cautious.
Now for some charts:
Here we see the Dow up against some resistance. Also, large stocks have been out performing the broader market stocks. A sign of internal weakness.
Chart provided courtesy of www.decisionpoint.com
And speaking of internal weakness, we again saw more stocks making new lows yesterday than new highs. I discussed this in more detail yesterday (see those comments at the bottom of the page).
Chart provided courtesy of www.decisionpoint.com
Here we have the 21-day moving average of the ARMs Index. It is hitting levels normally accompanied by pullbacks in the indices.
These are all signs that tell me to play defense. Whether the signal is early or not, I don't know. I do know I won't fight it and I will wait for the air to clear before getting back on offense.
That's all for today. Currently 100% G fund. Thanks for reading.
Please support TSP Talk and check it out The Gallery.
The market had a difficult time deciding which direction to go Monday. I believe there were over 20 crosses above and below the flat line for the Dow yesterday.
While I feel my indicators are very good at finding long and intermediate term market trends, it has tended to be a bit flakey making short term calls. The signals have tended to be early. If that's the case we could see more upside but I hate to fight the indicators. They are currently sending a red flag and if you go through the red flags enough, eventually you will be blindsided. So, I will remain cautious.
Now for some charts:
Here we see the Dow up against some resistance. Also, large stocks have been out performing the broader market stocks. A sign of internal weakness.
Chart provided courtesy of www.decisionpoint.com
And speaking of internal weakness, we again saw more stocks making new lows yesterday than new highs. I discussed this in more detail yesterday (see those comments at the bottom of the page).
Chart provided courtesy of www.decisionpoint.com
Here we have the 21-day moving average of the ARMs Index. It is hitting levels normally accompanied by pullbacks in the indices.
These are all signs that tell me to play defense. Whether the signal is early or not, I don't know. I do know I won't fight it and I will wait for the air to clear before getting back on offense.
That's all for today. Currently 100% G fund. Thanks for reading.
Please support TSP Talk and check it out The Gallery.
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