The S&P 500 broke up through the rising bearish wedge yesterday and NOW has broken back down through the top of the wedge, which constitutes the first SELL signal for traders. Do you see the red lines JUST BELOW the top line forming the wedge? That is where the market is right now.
A more significant break would be for it to now fall through the BASE of the WEDGE to the downside. That would generate much more selling presumably.
Things have topped out here. Everything but the dollar that is. Be sure to look at the US dollar vs. Gold Chart on my blog today (link is below). It is the NEXT BIG TRADE I believe. I could be wrong, but I think the dollar is about to rally hard and leave most everything else behind.
On a practical level, you may decide to wait for a close below the wedge before you sell. Do what you feel is best for you. If it turns out, the market recovers and you have exited, you must be willing to get back in.
You can review my recent thinking here on THE BIG US DOLLAR TRADE:Market Timing Blog at SunAndStormInvesting.com
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Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.