An update to my previous post

Above you will find 6 charts all labeled on the top row and in this order, S&P, Small Cap, International, Nasdaq, Dow30, and Transportation.

Notice that only the Nasdaq appears to still be in an uptrend. Four of the charts are consolidating and appear to forming bull flags which is good but only if they break to the upside like they are suppose to. The Transportation is also in a bull flag but it has a downward slope and is the first of the indexes that might be rolling over to the downside. We are also very close to crossing the 50 day moving average to the downside on the transportations. All the other indexes have a good gap above the 50 day ma, which is good, but I’m starting to get a little nervous.

Remember what I said about my stock positions are normally the first thing that shows signs of reversal? I have been stopped out of 4 positions in since the 10th and I have more that are very close to being stopped out. Another note is that the Futures the last few days have open to the plus side only to have the market reverse to the downside.

All I’m saying is warning signs are starting to appear and we now have to watch closely to protect profits. I plan on staying in for the moment, but if these bull flags start breaking down like two days in row, I will likely run to safety.

Be alert.