{"id":3223,"date":"2013-10-09T14:10:03","date_gmt":"2013-10-09T18:10:03","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=3223"},"modified":"2022-04-06T15:05:05","modified_gmt":"2022-04-06T19:05:05","slug":"market-timing-buy-signal-danger","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/market-timing-buy-signal-danger\/","title":{"rendered":"Why Our Stock Market Timing “Buy” Signal Is Now Clinging To A Cliff"},"content":{"rendered":"

Yesterday’s (October 8) selloff was broad-based and ugly, with just about every industry sector getting hit hard (utilities were an exception).<\/p>\n

The NASDAQ Composite ($COMP) and small-cap Russell 2000 Index ($RUT), the leading market averages in recent months, were hit the hardest with losses of -2.0% and -1.7% respectively.<\/p>\n

The NASDAQ is now the only index still trading above the 50-day moving average<\/b> (but not by much).<\/p>\n

Individual leadership stocks, typically small to mid-cap stocks with a strong history and outlook of earnings growth, were hit hard as well.<\/p>\n

Whenever the major indices undergo a price correction, one of the most important factors we analyze is how well leading stocks hold up and show relative strength<\/strong> to the broad market.<\/p>\n

So, where does this leave us as we enter the new week?<\/p>\n

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