We got a sell signal on SPY today

We got a sell signal on SPY today. With this every index has a SELL on its chart. This index gained 2.8% from its BUY to SELL signal.

If we were doing prudent money management, we should be 100% in cash at this time.

Prudent money management would have been to start selling weak stocks when we got a sell signal from Market Breadth Ratios (on 5/3/2012) and holding on to that cash. This in effect would have gotten us more and more into cash as this correction proceeded instead of waiting till 5/18/2012, when we got the sell signal on Momentum Leaders or waiting till today when we got a SELL signal on SPY.

Now we need to wait for the market to indicate a change in general market conditions. In other words a “BUY” signal on Market Breadth Ratios.