TECHNICALS – S&P500 AND DOW JONES SELL SIGNALS GENERATED

QMG clients were provided with a Technical Alert earlier this week of the potential for technical sell signals to be generated on the S&P500 and Dow Jones . The US index sell signals were generated last night, with the technical outlook turning negative. During this year the global index technical signals have been effective in identifying the major turning points in global markets. The mid-year sell off, and then subsequent recovery were preceded by a cluster of index signals generated. In relation to the current situation, it is too early to suggest that a (negative) global market turning point has emerged. I would need to see a cluster of major index sell signals generated for this to occur, and this has not emerged. However, specifically relating to the US market, it is obviously negative that the Dow and S&P500 have simultaneously generated technical sell signals.