With the S&P 500 closing 11 out of the past 12 days under a key support area and the Nasdaq closing under its key area again today on increasing volume, the markets rally has faded and makes the Current Market Outlook a “Red light” and continues to be classified as a “Market in Correction”.
Making matters worse, volume was higher than the prior day for a third straight session. Significant declines in higher turnover are known as distribution. When distribution (professional selling) piles up quickly in the span of several days or weeks, the market may be topping. This signal tells growth investors that the current stock market environment has turned negative and suggests that investors should be careful and look to reduce exposure in the market until better conditions return.
Keep an open mind, however, and be flexible. The market is not falling like a stone just yet, and if conditions were to improve for the better (ie: election being over, Fed interest rate decision clarity) the markets tone could change and spark a year-end rally. Check back to this page often for future “current market outlook” updates.
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.
©2016 Triumphant Portfolio Management, LLC.