charts: MAJOR SIGNAL

"IF" THE WEEKLY SPY CLOSES TODAY LOWER THAN 195.62, ANOTHER SELL SIGNAL WILL BE GENERATED SIMILAR TO THE OCTOBER 2000 & MARCH 2008 SELL SIGNALS.

In the following charts you will see how the monthly SPY used with the weekly SPY has been an excellent signal filter in the past 20 years.  Sell signals in the monthly SPY has confirmed sell signals in the weekly SPY.  When the monthly SPY was on a buy signal and the weekly SPY gave a sell signal it was short lived and therefore the sell signal failed. 

The following is a good example of what anyone can do with eSignal or similar platform and some ingenuity. 

Courtesy of eSignal

In the monthly SPY chart above sell signals are highlighted in yellow in October 2000, March 2008 & August 2015

Courtesy of eSignal

In the weekly SPY chart above the sell signal highlighted in yellow after the monthly October 2000 sell signal occurred November 27,2000.  Note that weekly signals that did not occur with monthly signals were failures.

Courtesy of eSignal

In the weekly SPY chart above the sell signal closest to the monthly March 2008 sell signal highlighted in yellow occurred December 31,2007.  In this case the weekly sell signal could have been a failure, but, it was confirmed as the monthly SPY did generate a sell signal a few months later.  Again, note that weekly signals that did not occur with monthly signals were failures.

Courtesy of eSignal

In the weekly SPY chart above the sell signal "MAY" happen at today's weekly close if the SPY closes below 195.62.  The monthly SPY already has generated a sell signal at the close of August 2015.  So all we have to do is wait for the close today to see if another MAJOR SELL SIGNAL is generated.  Again, note that weekly signals that did not occur with monthly signals were failures.

*On any major sell signal it does NOT mean that the market goes straight down.  In fact you can see in the last two and only two signals shown above that the market acted different both times.  This means that the market can act differently this time too.  The possibility for marginal new highs can never be ruled out either while the sell signals do not revert back to buy signals.  But, until the signals turn bullish, the market trend is up and not down, etc, etc, etc, rallies can be sold and watch your indicators carefully for ANY changes.

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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results