There are a couple strong signs that we are hitting some resistance and that we are about to see another move to the downside. First, the S&P met resistance at the recent Feb high and then retreated. The other sign that is showing a potential slide is the MACD. It has started to curve down from over bought territory and that is rarely followed by a move higher. Take a look a the chart:

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On top of that, we have the VIX ease up a bit but it is also showing a MACD signal that it could spike. Moves up in the VIX are create a strong environment for a move down.

There are no guarantees with the market but when multiple signs point in a certain direction, it demands attention. We have talked about tools that can be used in a dropping market along with some ETFs that can be useful. You can read it here.

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Keep learning and trade wisely,

John Boyer


Market Wealth Daily