The NASDAQ Composite moved above the high of its switch to a sell signal on June 22, so at 2694, the model is now on neutral. When the model switches to neutral, one is advised to sell their ETFs.
Note, 2694 is 0.8% on NASDAQ Composite from where sell signal was initiated, thus minimizing the effects of this whipsaw market.
The model will switch to a buy once it sees a proper follow through day and/or proper follow through action on behalf of leading stocks. In other words, the bounce is not just one of the dead cat variety.
The model will switch back to a sell should it see either a lackluster rally indicative of a dead cat bounce and/or should the number of distribution days trigger a new sell signal.
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