GMI: 1; Don’t fight the market down-trend

The GMI fell to 1 on Wednesday.  Gmi0809 49% of the Nasdaq 100 stocks advanced, as did 30% of the S&P 500 and 23% of the Dow 30 stocks.  There were 88 new highs and 130 new lows in my universe of 4,000 stocks.  Only 36% of the Nasdaq 100 stocks closed above their 30 day averages and only 17% are in a bullish stage 2 up trend.  34% of my stock universe advanced as did 33% of the IBD 100 stocks from 5/15.  Only 30% of the IBD 100 from 5/15 are above their 10 day averages and only 35% are above their 30 day averages.  Only 20% of the IBD 100 stocks from 5/15 closed higher on Wednesday than they did on 5/15.  With 80% of IBD 100 stocks down or unchanged since 5/15 along with 64% of my universe of 4,000 stocks, how much more evidence do we need that this is a time to be in cash or short!  Wednesday was the 25th day of the current QQQQ short term down trend.  My scan of the market found just 7 rockets and 329 submarines.  We fight the down-trend at our peril.

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