The Market Trend Model (data sheet) remains with a negative bias as the stock market indexes were knocked out last week when investors suddenly realized economic growth may be slowing around the globe. Whether the stock market panic was due to poor economic data out of China and the devaluation of the Yuan, fear of an economic slowdown in the emerging markets and Europe, the ongoing collapse in commodity prices, or a fear of the Federal Reserve and Janet Yellen's constant jawboning about an interest rate hike simply does not matter.
One only needs to look at the market to see in what direction the market is moving. The constant churning in the Nasdaq (chart), the Nasdaq-100 (chart), and the S&P 500 (chart) has been evident for weeks. The Russell 2000 (chart) has been declining for months.
As I stated in last weekend's blog posting, "The last four weeks have definitely seen sellers in control of the market, yet sellers have made little progress in pushing the stock market indexes substantially lower." Now that it is readily apparent to everyone stocks have been sold, it is now time to be on the lookout for the next market trend change in the coming weeks and months. As usual, remain mindful that anything can happen from one day to the next.