By Robert McHugh – Re-Blogged From http://www.Gold-Eagle.com
For the first time in six years, our Primary Trend Indicator, a long-term trend stock market forecaster, generated a new signal, a Sell Signal on May 31st, 2016. The last signal change was a Buy in May 2010. These long-term Buy and Sell signals are rare, but have been very accurate at identifying the start of new long-term trends. This is a warning that stocks are about to enter a long-term Bear market, one that will likely be lengthy and deep based upon the market’s behavior after previous Buy and Sell signals from this indicator.
The most recent previous signal came on May 31st, 2010 when the PTI generated a Buy signal, and it remained on a Buy signal until May 31st, 2016. After that Buy signal six years ago, the Industrials rose 8,152 points (an 80% gain).
The last time it generated a new long-term trend “Sell” signal was almost eight years ago, on September 30th, 2008, just as the autumn stock market crash started, when the DJIA closed at 10850. We saw a 4,400 point drop (i.e. 41 percent decline) after this sell signal was triggered.