Well this what I hate about the stock market sometimes. These quick snaps to the downside that no one can possibly predict. In most cases, if you yank your money out now and run to safety, you are going to lose. This is only August 10th. We have 21 more days to go before the next monthly moves are called and right now, everything is still a buy. On the daily charts there is drama everywhere. I’m on the road traveling and didn’t even hear the cause or reason for this latest move down and to be honest, do not care. I will ride this pullback out until the 31st of August. Now let’s look at the damage.
The S&P 500 fired sell warning 1 & 2 today. The DMI went from mixed to negative, but still looks undecided to me. Volatility absolutely exploded to the negative side of the line. When you have major drama like this, normal things calm quickly because now we are likely close to oversold. I hate nasty moves down like this, but wait till you see the Small Cap.
The International also got knocked around but right now there is no sell warnings. Just slight move lower tomorrow and we will get two sell warings at once. Volatility also exploded to the negative upside. The most amazing thing was how fast the DMI strong uptrend signal snapped to a negative.
The Small Cap fired sell warning 1 and 2 yesterday. Today we got an outright Sell signal. So if by tomorrow at 4pm price has not recovered back above the uptrend line, which is $1218.00, the small cap will be a daily sell. Volatility also exploded to the negative. So much damage done in a very short period of time.
As it stands right now, I am down 1.9% for the week. Still up 9.97% for the year, so I’m good.
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