US Stock Market Averages Give Sell Signal Today, But Will It Matter? – Mike Swanson (09/29/2020)

This morning the DOW and S&P 500 and Nasdaq all gave sell signals on their hourly charts with their stochastics indicator. That technical analysis indicator went above 80 and then back below it to give a sell signal.

This sell signal doesn’t mean the stock market is just going to crash. It is only on an hourly chart. Daily signals are more important, but in context with what has been happening it does mean we are in a sideways to down US stock market environment right now different than what we saw in August. Weaker sectors and weaker lagging stocks can now get daily hits at any time, but pockets of strength will remain in an overall sluggish market.

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