Thursday, August 10, 2017

US Stocks Decline But The Message of The Market Hasn't Changed, Only Opinions

A weekly close below 7/31 gap with force, a weekly close the breaks the ice of support with greater than 1.5 billion shares traded, will escalate the selling in August (chart). A low volume close, however, generates a false breakdown. A false breakdown favors a trend reversal once the selling subsides. Followers of the Matrix should be tracking DI and CAP across all US stock indices; some are showing bullish setups already. The bears, many bragging about after-the-fact gains that may or many not exist, will be screaming sell (see below). If their forecasts are inconsistent with the message of the market, they should be ignored.

The Dow Industrials' primary trend has been aligned up for 74 weeks. Consolidations that fuel pessimism toward stocks during seasonal weakness are not only normal they're inconsistent with stock market tops.

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Headline: Pimco and T. Rowe Price Warn Investors It's Time to Reduce Risk

Two of the biggest money managers have a message for investors: it’s time to dial back risk.

Investors should pare U.S. stocks and high-yield debt while shifting to lower-risk assets, such as Treasuries and mortgage-backed securities, according to an allocation report by Pacific Investment Management Co.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.