Stocks drop a little for the week, but flash a big sell signal as bullish momentum slows. Double top with weekly bearish divergence = conviction sell.

Hi everyone. Market indexes have flashed a very big sell signal this week despite only dropping a little. The momentum indicators show that momentum has slowed, and we have also hit a double top. This is a conviction sell or short with a price target roughly 8-10% below the current high for a long weekly swing trade.

I haven’t traded for over a year, but I will likely take this short trade here myself. I’ll keep you updated. 

QQQ Weekly 9_21_2019.JPG

DIA weekly 9_21_2019.JPG

SPY Weekly 9_21_2019.JPG

Above are the weekly charts of the indexes – notice how they all look more or less the same. I hope you all enjoy the rest of your weekend. See you next week like always! 

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