The high-flying Nasdaq-100 Index is set to roll over into a correction, according to two of my most trusted market timing indicators, as shown below…
First, the Nasdaq has closed higher 10 of the past 14 trading days, notching a string of new highs along the way, including yesterday’s move above 6,132. But today, Nasdaq futures are selling off on increased volume and broke its short-term moving average (yellow line in upper panel of chart).
The last three times the Nasdaq-100 futures closed at new highs one day, then dropped below this key moving average just a few days later, the Nasdaq suffered corrections of 5.3% in June, 4% in August, and 3% in September.
Today we’re getting this reliable sell signal once again.
Second, in the lower panel of the chart above, you can see a price oscillator that has likewise proven quite accurate at predicting reversals in the Nasdaq. Whenever this indicator closes at an extreme high, then quickly retreats to the downside, it signals a shift in the balance of buying power from bullish to bearish.
The last three times this indicator signaled sell was also June, August and September. Today we have another sell signal.
Taken together, these trusty market timing indicators are flashing a sell signal at the exact same time, which tells me there is a very good chance of an imminent correction in stocks.
In fact, our E-Wave cycles confirm this timing signal, forecasting that a turn to the downside for the Nasdaq is looming, as you can see below…
Here’s what to do right away:
Using 5% of the trading capital you have set aside for this service, BUY to Open ProShares UltraShort QQQ, symbol QID at market.
This inverse ETF aims to deliver TWICE the inverse performance of the Nasdaq-100 Index. So, a 5% Nasdaq correction should translate into potential gains of up to 10% or more.
With our cycle models suggesting an imminent correction in stocks from now straight into 2018, this ETF is a great way to profit from this decline. Place this order with your broker right away and stay tuned for further updates.
Good investing,
Mike
