July 10, 2015
Trades & Tutorials
By Geoff Bysshe
This is NOT your typical interpretation of how to use the markets leading sectors as indicators for the general market direction. You won't find this anywhere else.
This does not require detailed analysis. Focus on the big picture view of market sector strength (or weakness) that this provides.
This is not going to pinpoint a top or bottom in the S&P 50o. Use price patterns or systems to define specific entry patterns.
This will tell you when to look for a major move to continue. It will also tell you when it is very dangerous to be long.
Currently the S&P 500 is consolidating at the 200-day (40-week) moving average and
this indicator is also at its tipping point between bullish and very bearish.
This combination of the Market Sector weakness and S&P 500 weakness has not occurred since the major market sell off in the summer of 2011. At that point this indicator kept you out of the market until it was safe to get back in.
After protecting you from a failed attempt by the S&P 500 to breakout in October 2011, it then alerted you to a safe breakout in January of 2012. This breakout marked the beginning of a move in the S&P 500 which has since rallied from 128 to its current level of about 205 which is a 60% move!
Watch the video to learn how it works. If you have any questions leave me a comment below.
You'll find the updated indicator that this video is referring to in our Free Resources/blog area. It's on the Little Big View "Sector Summary" page (link will open in a new tab/window).
You can also get the free report and series of training videos that this video references buy using this link below (limited time only).
Tap here for a free report and training videos on
How To Profit From Major Trends Using ETFs
