The stock market took a pounding today as two of the major averages tumbled more than 1.1% while the DJIA fell 0.81%. As the first chart indicates, the MACD had a negative crossover today resulting in a SELL signal on Indicator #5. Moreover, the index is resting on its blue support line. The next support level is at 3900.
Additionally, Indicator #8 the index crossed over its moving average to the downside on Tuesday. The MACD’s negative crossover is imminent. Once this occurs this indicator will be on SELL signal as well. Refer to the second chart.
Top 5 ETFs — Two Sells Today
Two ETFs were sold intra-day today at their 3% stops. IBB was sold at $217.35 and IWM was sold at #110.52. Thus there are three ETFs left in the portfolio which will not be replaced as the Dashboard is not on a BUY signal. Note that the top 16 ETFs on etfscreen.com/budonthold have a “fail” rating and that only 4 out of 42 have a “pass” rating.
The regular weekend blog will be published as usual with more details.