Market Alert
Dear Subscribers,
Alert: Today, Tuesday, February 27th, 2007, China's stock market plunged 8.8 percent, the largest one-day drop in a decade. This comes on the heels of Greenspan's recent comments that a recession is possible later in 2007. It also comes as the technical set-up for world and U.S. stock markets warns of a coming significant decline. For the past several weeks, we have been pointing out amazing similarities between the current market set-up and that of major declines of the past century.
Here's where we stand Tuesday at noon, Eastern Time: The Dow Industrials are down 144.60 points, or 1.14 percent, at 12,487.66. The S&P 500 is down 18.07 points, or 1.25 percent, and the NASDAQ 100 is down 32.74 points, or 1.78 percent.
We ran a model for our S&P 500/DJIA PPI key trend-finder indicator and have noted that should U.S. markets close where they are at noon, or worsen, we will have the first new "sell" signal in this amazing indicator since July 19th, 2006's "buy" signal, 1,600 points ago from this morning's open.
Today, Tuesday, February 27th, the Dow Industrials have dropped below their 50 day moving average for the first time since July 2006.
Today, the weekly MACD has triggered a "sell" signal on both the Dow Industrials and S&P 500 (this is an intermediate indicator).
Still lagging are New 52 week Lows in the NYSE. Should they rise toward 70ish, risks of a coming significant decline would rise even more. What we may be seeing is the first hiccup, an early warning, of a coming significant decline. Many times we get early warnings a month or more before a major decline begins. In 1987, we were seeing declines like today all through the month of September, followed by rebounds, before the market finally tanked in mid-October.
We will provide in-depth closing coverage in tonight's Tuesday Market Update at www.technicalindicatorindex.com
Robert McHugh, Ph.D. |
