Holiday Weekend Selling?

As you know we have a long weekend coming up. Taditionally investors have lightened their load going into such periods for the fear of the unknown that could occur over three long days. We also have some evidence that thr trend that started in March is losing steam. Take a look at the charts.

These are all charts of the SPY-I've mentioned before that the ETF's for indicies seem to give earlier signals than so the indicies themselves.

This is a 30 min. 3C chart (custom indicator I developed using TeleChart). This time frame is a good one to see what's happening in the next few days. As you can see, we saw a negative divergence at the top and now a downside leading negative divergence indicating more pressure on the sell side, at least in terms of accumulation and distribution. TSV in the middle has crossed below it's moving average and BOP at the bottom is red signaling selling.


This is my ChannelMax trend trading system. As you can see, we are still in the buy or hold mode until price crosses below the channel


Here's a longer view of ChannelMax, which you can access the trades by emailing me and I'll add you to the private site Wolf on Wall Street. As you can see, the system called a great short position and excellent entries on the long position, easily beating the market's performance.


In our final chart we see not only an RSI negative divergence and cross below its moving average, we also see an ugly negative divergence in my long MACD histogram.


I have believed from the start that the greatest bear market since WW2 has produced one of the greatest bear market rallies as well and that is just what I think we are seeing. At some point I think lows will be tested and we are perfectly set up for a nice double bottom which may signal the beginning of the end of this bear market.