…according to my proprietary market timing indicators. And when you look at the divergences in this chart it only adds support to my theory. The Trix and $NYMO has been declining for the last 6 weeks as the market has been rising. Add in the fact that the McClellan Oscillator has just gone negative only adds to the fact that the markets should be entering a period where it’s better to be in cash or short. Take a look at the chart below as I’ve highlighted the bullish/bearish periods when the Oscillator goes from positive to negative.
That’s not to say that the markets couldn’t stage a massive reversal next week. I’m just saying that the odds are against it at this point.
