GMI falls to 3, IBD sees correction, getting cautious

GMI3/6
GMI-22/8
T210832%

I had not noticed that IBD changed its outlook to “Market in Correction” on Tuesday.   The GMI is now at 3.     Remember, trend followers can only identify a top after it has occurred.   One promising indicator is that the put/call ratio was 1.16 on Wednesday, and the market tends to bounce when the ratio is that bearish. The market rarely goes in the direction   the crowd predicts, and the option crowd is clearly getting bearish, by trading more puts than calls. For now, it is best for me to raise cash and   stops.   The T2108, at 32%, is low, but not in likely bottom territory yet. The longer term   trend remains clearly up, however.

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