Another respectable indicator moves over to the dark side.
Investors Business Daily’s Big Picture market tracker has been a remarkably prescient indicator over the course of the last year. Following this indicator kept investors out of the major losses last year and got you back in the market early enough to capture the majority of the gains off the March bottom.
They’ve been bullish throughout the massive rally and just changed their outlook to negative for the first time since the rally began. They note the high volume of the recent sell-off, loss of leadership, and high number of distribution days as the reasons for their move to a bearish stance. They now recommend avoiding new stock purchases altogether until the market begins to exhibit some signs of strength
Source: PragCap
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