Saturday, January 10, 2015

Time to Exit Stage Left?

The Market Trend Model (http://bitly.com/M_Trend_Model) continues to show a negative bias despite a sharp and violent mid-week stock rally. On Wednesday and Thursday the major indices were back on track as another v-shaped rally appeared to be under way.  However, Friday saw stocks get whacked with the Nasdaq-100 getting especially hard hit as this index printed its 7th distribution day in two weeks time (http://scharts.co/1swVeGf).

At the end of the week the Nasdaq, Nasdaq-100, and S&P 500 failed to hold their respective 10-week moving averages.  The Russell 2000 has managed to hang on to its 10-week moving average, but this index has been unable to hold its 10-day moving average since peaking at the end of last year (http://scharts.co/1BUioi9).

The market appears to be at a very critical juncture and any further selling could beget a lot more selling.  At this moment anything can happen and the question as to whether it is time to exit stocks stage left will likely be answered within short order.