Stock Market Warning: a MAJOR Sell Signal Has Hit
By: Graham Summers
GolsSeek.com
Tuesday, 24 November 2015
A major long-term momentum indicator is flashing, “sell.”
Based on the historical significance of this indicator we may be putting in a top and possibly THE top for the bull market that began 2009.
The indicator concerns the monthly moving average convergence divergence or MACD.
For those of you who like technical analysis, this indicator is formed by two interweaving lines.
The first line (usually black on the chart) is formed by subtracting the 26-month exponential moving average (EMA) from the 12-month EMA.
So if the 26-month EMA is 12 and 12-month EMA is 10, the black line would be at 2 for that particular day.
The second line (usually red on the chart) is formed by the 9-month exponential moving average.
The “signals” come when the two lines connect:
1. Anytime the black line breaks above the red line, it triggers a “buy” signal.
2. Anytime the black line breaks below the red line, it triggers a “sell” signal.
“Sell” signals usually coincide with market tops forming. They also trigger when bull markets END.
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