GMI back to 2; IBD says market in correction


The end of day drop in the averages brought the GMI down to 2 and the T2108 to 49%.   Monday was the third day of the new QQQ short term down-trend.   IBD now sees the market in a correction. One more weak day will cause the GMI to flash a sell signal. Time for me to be in cash or short.

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2 thoughts on “GMI back to 2; IBD says market in correction

  1. It is rare that I get so many quick changes in the GMI. I generally get in and out of the market in stages. When I get back in, I buy a stock breaking out rather than getting back into a stock I exited. If I exited a stock it is likely because it broke support. I would only reenter if it gave a new buy signal. Thus I look at the GMI for the major market trend and then trade the pattern of the individual stock. However, when I trade the index ETFs, I follow the GMI and short term trend signals more directly.

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