#MarketTiming – as breadth goes so goes…

The long-term breadth indicator I use, which is the McClellan Summation Index, turned down last on 10/17 giving a sell signal for the open of 10/18. Utilizing the New York Stock Exchange advance/decline stock line, one of the broadest measure of market movement there is, it has been, and continues to be, one of the best reads on market direction. Maybe the best.

It defines the market’s longer-term trend.

So what has happened to stocks since the market’s sell signal (or short signal)?

Just some examples (see the chart panel below) – of the 10 stocks on my bellwether stock list, as of today’s close, nine are down, led by TSLA with a 9.1% short profit and BABA with a 5.1% profit. Nine stocks down. In seven trading days.

(click on chart for a larger view)