Yesterday, the weekly Trade Triangles flashed warning signs on both the S&P 500 and the NASDAQ. This is the first indication we have had indicating that the intermediate-term trend for both of these indices has turned negative.
Now before you go selling everything, just remember this is not a major signal, it is just a warning sign that things may be going sideways to lower for a while. Look at the weekly Trade Triangles like the canary in the mine - if you don't exit the scene, there could be bigger trouble later on.
As many of you are aware, the markets have been moving sideways for quite some time now without any real solid direction. When you look at the broader picture, it would appear as though we are in a wide trading range, bound by the recent highs and lows that were seen in late March. Continue reading "Caution Advised, The Danger Flags Are Up!"