Author: TG Asset Management LLC
Covestor model: Tactical All Asset and Tactical Growth
Stocks are closely approaching the two- year trend line again and a break below it would be a clear signal that a major sell off in stocks has potentially begun and the trend in stocks is bearish.
As illustrated by the below chart courtesy of Elliott Wave International, stocks measured by the NYSE Composite Index have touched (blue arrows) this support line five times before since March of ’09.
Chart from Elliott Wave International, http://www.elliottwave.com