A warning sign?

The trendline on this graph goes from the July bottom of the S&P 500 to the recent position (click on the graph to enlarge it). This trendline spans about 3 months and is becoming an important one.

What does it mean? It means that we might experience a painful correction if the market drops below this trendline. My rule of thumb is that the length of the trendline is related to the severity of the correction.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

George Dagnino, PhD
Editor, since 1977
Ranked No. 1 market timer by Timer Digest