Last week was another significant week, insofar as spread damage to the equity market was extensive but not yet terminal.  The Speedometer score stayed in negative territory, indicating that a significant shift in asset allocation is taking place.

Both the Daily and Weekly models are in Risk Off (invested in bonds), while the Counter-Trend Model is still long but will close out on Monday at whatever the close level is, giving us pure risk off.  And month-end is coming: it will be very interesting to see if the Monthly Model gives a sell signal.  It probably will!   That could be the nail in the coffin of the equity bull market since 2009.

Individual shares have been pummeled and some very bad damage has been done to a variety of leading shares that have been flying high.  I encourage you to work with the Database to see if your portfolio needs to be changed in composition.

A video of my expectations for the near term can be viewed at  https://youtu.be/bVg6eQY3KuE

 

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