The stock market selloff that began around the last week of January was predicted by the Trend Exhaustion timing system.  All three timeframes (monthly, weekly and daily) were in a cluster of Sell modes.  This began with a Monthly exhaustion point at the end of December 2017.  The Weekly signal hit right at the market peak (2,872 on the S&P 500) during the week of January 22nd, 2018.  Daily trend exhaustion soon followed on January 30th.  It’s no wonder February has been so unkind to the market.

Below is a Table presenting this “Triple Trend Exhaustion” of the S&P 500, along with the most recent Buy signals at each timeframe for comparison:

Notes:

* Right at the recent Market Peak.

**Daily Support has been Broken.  If a Daily Setup forms below this level expect additional short-term downside.

Two years (back to 2016) is a very long time to go without an Exhaustion signal for the Weekly and Daily timeframes – and nine years for the Monthly, leading me to think we could be in for more downside.  Support levels are shown in the Table for each timeframe and should be watched closely.

Here’s images (click on images for clarity) of the Sell signals from the Trend Exhaustion Market Timing Excel Spreadsheet

Monthly “Aggressive Sequential” Sell Signal for S&P 500, December 2017  (see cell BJ344)

Monthly Sell Signal

Weekly “Aggressive Sequential” Sell Signal for S&P 500, January 22, 2018  (see cell BJ1412)

Weekly Sell Signal

Daily “Setup” Sell Signal for S&P 500, January 30, 2018   (see cell K1411)

Daily Sell Signal

These Trend Exhaustion signals are powerful tools to identify when the market’s current trend is expected to reverse.  Learn more about the system here:  Trend Exhaustion Market Timing Excel Spreadsheet