Monday, April 7, 2014

3 Down Signals with One exception 4/7/14

My regular trading systems on DIA and SPY both gave down signals tonight after the second consecutive steep down day. These systems tend to whipsaw me at times. There have been two signal changes within a week. Still, these down signals currently align DIA and SPY with QQQ - all in the down signal mode. 

The only remaining upward signal is my ICE system on SPY. The weight of signals is certainly burdening downwards now and I need to go into a more cautious mode. Still I will remain vested in my 401K in the long direction till ICE flips me although I will take a closer look at individual fund charts.
Here is a chart on the Q's - this one has been the first to show weakness... and last two data points show increasing volume. In certain cases after a sustained down move could signal a climax to a downward move but I don't think so in this case... Caution ahead!




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