Yesterday’s sell off continued today in the face of a rally attempt that ended up giving the bears the upper hand.
As of today, the Trend Tracking Indexes (TTIs) are positioned in regards to their long-term trend lines as follows:
Domestic TTI: -0.10%
International TTI: -1.30%
The domestic TTI barely crossed to the downside, so the risk of a reversal back to positive territory certainly exists. I will therefore continue selling only those remaining domestic equity funds/ETFs that have dropped through their sell stop points, but will hold off with an all-out Sell until the TTI confirms its position by staying below the trend line over the next day or two.
The story is different with the International TTI, which has clearly broken through to the downside by -1.30%. This signals a Sell for all broadly diversified international equity funds, and I will liquidate the one remaining position I still have.
Should market action warrant a daily update, I will do so and hope to have it posted by 4 pm PST.