The SP500 index wedge has been broken to the downside. When a wedge is broken to the downside, the particular index can retrace to the base of the wedge which would be at about the November lows. This is the nature of this market timing signal.

When a signal like this goes off, you have a few options:

1. Set a stop loss somewhere below the current price, but fairly close.

2. Sell here and rebuy a new recent high close.

3. You could even use a very wide trailing stop at 15%-25% below the high if that is your style.

For the charts on what this wedge looks like see my FREE SP500Tracker™ newsletter which was out early Monday morning.

You can sign up here:

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Enjoy your day!

David

Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.