The markets remain overwhelmingly positive, with our ETF composite at 95.34% positive and the DJIA components at 86.67% in our system’s assessment.
It is always good policy to realize that when stocks reach a point where there is little left to the upside, to look for signs of a slow-down.
The Quacera Early Warning Report is designed to measure differences in momentum which precede any change in direction. October, despite its bad market reputation actually tends to be a recovery month after bad historical Septembers. This September the market was up considerably, so it may be that we’ll see a continuing rally, but for now our early warning system points to some selling in the offing.
As more of these elements of the Dow turn lower, the risk increases that what might be a bit of profit taking could become a violent move to the downside.
