Indicators Point to Major Market Decline Ahead

There appears to be a higher-than-average chance of a long-term trend change this quarter. Presidential elections have marked significant turning points in SPDR S&P 500 ETF (NYSE: SPY) in the past. Generally, we have seen the trend accelerate after the election. And this time around, we have a troubling stochastics sell signal occurring at the same time as the election.

This trade signal has correctly identified market sell-offs that lasted at least two years 57% of the time, but there have only been seven sell signals like this in the history of SPY.  (more)