Cycle Takes Hold, Looks To Confirm: SPDR S&P 500 ETF Trust

For months prior, the investing public was told a major cycle was approaching. According to research, this cycle could pose a major top in the markets and lead to the first 10% correction in years. The cycle period hit in mid-July. No sooner did it hit, the markets began to stall and chop sideways. This showed the start of the cycle as institutional sellers began to unload into retail buyers. When the markets have volatile moves up and down from day to day, this screams of distribution. Two days ago the S&P 500 closed below an epic trend line. This was step one to the major break down beginning. Step two was to see the Confirmation Signal. The massive move down today should officially confirm the break and the downswing in the cycle leading to an eventual 10% drop in the markets. While there will be buy the dip bounces, the S&P could see as much as a 200 point drop before all is said and done. For those that were preparing for the cycle by putting their money in cash or short, congrats. You will be paid handsomely.

Gareth Soloway
InTheMoneyStocks.com