The stock market has continued to experience high volume selling (a.k.a. Distribution) but now with downward price violations in each of the main indexes key moving averages. The Dow is down almost 300 so far today.
Indeed, the recent feeble market rally attempt did prove to only be a “fake-out.”
As a result, our Current Market Outlook is being downgraded during the trading day to “Market in a Correction” with a red light. The TPM “Core Four” internal indicators are at 3 red and 1 yellow. The net result is a red light. We continue to be defensively positioned in our strategies and are praising God for that insight.
Please note that the previous glimmer of hope for the bulls (that the S&P500 index might hold its all-important 50-day moving average) has been extinguished as the index is knifing through that support level on higher volume today. While it is possible that a massive reversal rally could happen by the close today, which would negate the 1pm RED signal and leave it at YELLOW, it is very unlikely.
What should investors do now? Remain calm and be patient; repair takes time. Execute your exit strategy by acting defensively, but stay hopeful and keep grooming your watchlist.
Have a Triumphant day! ®
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice.
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