It’s finally happened. The monthly MACD of the NYSE Composite turned positive at the end of July. This has been a reliable long-term buy signal in the past. The sell rule in this model is a negative 14-month divergences.
In the words of Ronald Reagan when he was negotiating an arms control treaty with the Soviets, “Trust, but verify.” I am inclined to trust the bull, but it’s equally important to verify that a recession won’t sideswipe any potential equity advance.
The full post can be found here.
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