The Real Reason for Market Softness



Remember our indicator that worked so well from 2009 to mid 2013? It went off the rails for the entire second half of the 2013 and stubbornly refused to turn bullish as the market ripped higher (sweet indicator, right?). Well, a couple weeks ago the market finally forced the indicator to flip positive.

Basically, the “bullish” flip higher coincides perfectly with the most recent top. A flip positive after being negative for 100 handles can definitely be looked at as a contrary signal. In the past, this type of price action has preceded a long topping process.

Consider yourself warned.

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