Stock Market Technical Indicators & Analysis
The indexes are oversold and we may see a bounce this week. If I was not in cash I would sell into any bounce. Here is the 10:30 weekly chart. The 10 week average is about to cross below the 30 week for the first time since June, 2025. Note the recent high volume weekly declines.
The GMI=0 and RED.
If the 30 week average curves down, it could signal the BEGINNING of a major down-trend. That signal got me out of all large declines since 2000. I refuse to put my $$$ at risk. I do not mind buying back higher if/when the trend turns up. I cannot tolerate a major drawdown in my retirement accounts. Younger people can hold on with the belief that the market always comes back. After the 1929 top, the Dow took 25 years to come back. I can’t wait a long time for my account to recover. The market is severely oversold now, however, so we may see a quick short term bounce. Note the above average trading volume on the recent weekly declines.
On February 4th I posted that a new QQQ short term down-trend had begun. QQQ went sideways after that but QQQ may now be entering a longer term Stage 4 down-trend. If it does so, we may be in for a sizable decline. That signal got me out early from the large declines since 2000. I have been posting that I prefer to be in cash. If the 30 week average turns down, all of my funds will be in cash. Be very careful. Most people who have not experienced a major market decline may be slaughtered. Look at recent above average weekly volume declines. Gray line in chart shows weekly close. If we enter a Stage 4 decline I will post the indicator I use to detect market bottoms. Study the Livermore quotes below that I showed my students.
GMI=0 and RED.
