SPX sell signal at close today

As you might recall, i posted this a couple of days back.

Now if the DOW starts correcting here, it would push the SPX CCI below 100 and NDX will seem like a rejection from the 100 line. So the implication is that some sort of a short term correction will begin soon. If this scenario were to transpire, it won't be a plain garden variety ST correction. The reason being the daily MACD is already hovering near zero and if we were to get a continuation sell on the MACD, the MACD would dip below the zero line. Selloffs when the MACD is below the zero line are generally brutal.


The post market action seems to confirm my above anaysis.

My system issued a daily sell signal on SPX at close today. I am expecting a sharp selloff over the next few days. The NYSE MCO had a zero line reject today. This market has been pushing against internal divergences. The sentiment seems to be one of "Divergences don't matter anymore". I think the market is about to give a surprise to the bulls here.

Just one look at this tells all

http://stockcharts.com/gallery/?$NYAD

Good trading to all !