I analyzed my charts and it looks like there is unfinished business on the downside. I suggest my swing traders to stay in cash. The next signal you are going to get from me is a buy, I don't know at what level. But, you stay in cash. period. Because the market gapped up multiple times and stopped you out. Fine with my system, you will get your chance. Please wait in Q.
The market is sick and 1 chart straightaway shows it. The NYA50R declined today by 22.5%. Translates to 22.5% of the NYSE stocks fell below their 50 day moving average. May be the ticker changes on individual names may be small but I told you during the weekend that market managers tend to buy stocks which are above 50 DMA, 100 DMA, 200 DMA etc. The fact that even after multiple days of rally, the market could not take all these stocks so much higher above 50 DMA to be able to be above 50 DMA on a day like this (2% sell off) speaks volumes about the vulnerability of internal structure of this market.
Look at the NYA200R. It is at 29.32. So, with a rally of several days, all the market is able to do is to keep only 29% of the stocks above 200 DMA. Yeah? That is pathetic and sick.
If today finished close to even, I was going to write we were close to a buy signal. But, not anymore. All I can say for swingers is to stay in cash. That is only because I am following my system. I have to adhere to the rules of my swing system. Buy signal comes after sell signal and so on. If I followed several untested (by me) systems, I would ask you to sell short with good stop. That is where the market is.