The model is always measuring buying vs. selling pressure. As reported earlier, it has sensed selling exhaustion. Normally, the model stays on a sell signal, but the selling exhaustion has been more pronounced than even what it saw in 2008 (and certainly more pronounced than in 2010's flash crash). So yes, there are slight odds the market could continue to fall, but the odds are greater it will bounce. That said, the market may very well retest and undercut lows as it did post-flash crash in 2010, but that type of volatility carries huge risk so it is sometimes best to stay in cash, and wait for the next window of opportunity.
NASDAQ futures are trading -0.47% premarket as of this writing. As one possible trading strategy, one could sell their inverse ETF(s) (or cover their normal ETF shorts) once the NASDAQ Composite crosses above yesterday's close of 2381.05. That way, should the market continue lower over the ensuing days, one could use trailing stops as their inverse ETF(s) rise further, to capture further gains.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.