The stock market sold off hard today on an increase in trading volume and in the process sliced through key price support levels. Our official outlook has changed to a “red” light. The market is still in the 2nd stage of a possible 3 stage “sell” signal with only a major long-term uptrend line still offering hope for the bulls. However, due to the continued weakening of certain internal technical indicators and the growing amount of professional selling (Distribution Days) we have moved our Outlook to “Market in a Correction“. Keep in mind that it takes a long time to put in a market top and the bulls will fight the decline much of the way down creating a potential whip-sawing effect in the indexes prices. It is very likely that prices could even advance for a few days in the near future while still under mounting selling pressure.
While no one knows how far down or how long a correction may last, rest assured the markets internal indicators we employ will broadcast a new buy signal once investing conditions have settled and improved. At TPM we remain diligent to protect our clients assets by respecting our time-tested investing indicators and responding to them accordingly. This is one of our hallmarks and the second part of our TPM dual mandate.
Please check back here for future updates and have a Triumphant day!