All Indicators Are on an Aggressive Stock Market Sell Signal

By: Anthony_Cherniawski

As SPX approaches the 2-hour mid-Cycle support at 2082.30 and the 50-day Moving Average at 2079.52 we are likely to see a bounce. However, all indications are that it will be short-lived. SPX will be on a confirmed sell signal beneath the 50-day Moving Average.

ZeroHedge reports, “The post-retail-sales, opening ramp has been eviscerated as yet another data series suggests things aren't well in the US economy. US Business inventories rose more than expected in February (+0.3% vs +0.2% exp) but this held the crucial inventories-to-sales ratio at 1.36x - the highest since the Lehman spike.”

Of course, this only enhances the trend as bad news = bad news. Small Business Optimism is also reported to beat 9-month lows as hiring plunges.

VIX made a high of 14.74 this morning, challenging its mid-Cycle resistance at 14.64 and Intermediate-term resistance at 14.71. A small pullback is warranted as it gathers strength for the breakthrough. We may now consider VIX to be on an aggressive SPX sell signal.

The NYSE Hi-Lo index made a new low and is now on an aggressive sell signal as well. This is the lowest it’s been since April 2. A confirmed sell signal would be achieved beneath -10.00.

We may now proceed with a bit more confidence in our signals as we await the confirmed status on all of them.

Regards,

Tony

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