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Tuesday, March 06, 2012

1st Sell Signal In Over 3 Months

Too bad $BPCOMPQ bullish percent index is an EOD index and doesn't get updated until well AFTER the bell. (If anyone knows what time it gets updated, please do leave a comment. Thanks.)   Yesterday it flashed the first sell signal in over 3 months.  Of course I took yesterday and this morning off.  But it's moot as this morning was a big gap down and I am not the type who chase, especially after a red gap in the face of a bull market.

The 60 minutes chart on SPY is very oversold, so intraday bounces are very likely, but I believe we should now be in a sell on bounce mode, now that the tide has changed -- at least for a little while I hope!   The intraday put/call ratio has been around the healthy level of 1, so bears are not over-reacting and that's a good sign for a more sustained down move.

Here is my (rather useless) long term leading indicator, which has never turned up since last May and cause me to miss the whole rally.

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