Stocks are dropping today. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY)
is trading at $156.04, -$0.63. This is coming after the S&P 500
closed for the Easter Weekend at an all time closing high. Many expected
a solid move higher today after the new closing high was hyped by the
media all weekend long. In addition, today is the start of the second
quarter and a Monday. Usually, Monday's at the start of a quarter and a
month will see inflows into funds which will push the markets up. This
is not happening.

The signals for a sell off were everywhere last week. Only the smart investors saw them. I will lay out the reasons below.

1.
The financial stocks have been lagging the market heavily. Goldman
Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) made
their 52 week highs almost a month ago and have been selling since
them.

2. Copper has been falling out of bed since mid January.
This is not good price action if the global economy is the true reason
why the stock market is trading near all time highs. Note the chart of
iPath Dow Jones UBS Copper Total Return Sub-Index ETN (NYSEARCA:JJC).

3.
Tech leader Google Inc (NASDAQ:GOOG) hit an all time high in early
March 2013. Since then, it has sold rapidly. In addition, price action
on Apple Inc. (NASDAQ:AAPL) speaks for itself. This stock has had a
bounce recently, but still trades near 52 week lows.

4. When the
S&P 500 closed at an all time closing high last Thursday, key stocks
took an absolute beating. Look at the charts on Chevron Corporation
(NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM), along with all the
others mentioned above. They all closed sharply lower. This is not the
normal price action on leading stocks when the S&P 500 closes at a
new all time closing high.


Gareth Soloway
InTheMoneyStocks

The SET is also heading for the mother of all corrections...

The SET is also heading for the mother of all corrections...

What should we retail-investors do without the experts here on TV??

The SET is also heading for the mother of all corrections...

What should we retail-investors do without the experts here on TV??

Except that the example above is a copy and paste to sell the quoted service.

Spoiled on point 4 when 2 leading oil stocks used to predict a sell-off. The oils have been behaving poorly all through the current stock market surge. An advance indicator not a done deal.

And the service is expensive. Wouldn't mind getting my hands on the candlestick software though.