Upside and downside exhaustion signals are triggering around the world

Today the S&P 500 Index has a new upside DeMark Sequential Countdown 13 on a daily time frame (this is to be sold). The S&P 100 has the same signal. The Dow is on day 12 of 13 while the NDX is on day 11 of 13. FANG indexes had upside Countdown 13's last week and have actually underperformed in the past week. Breadth measures are still showing signs of topping action although today's breadth is very good. S&P bullish sentiment hit 85% recently and closed yesterday at 58%. I watch the 50% level as support after an extreme high is reached for make or break continuation moves lower.

On the other hand, the German DAX has a new downside DeMark Sequential Countdown 13 too (this is to be bought). There have been other downside exhaustion signals that have had a tough time turning up - notably in China/Hong Kong and within the Emerging Markets ETF. Gold also has had a tough time reversing after some downside signals too with the back drop of ultra low bullish sentiment (6%). Currency moves have been the driver with tariff actions as the catalyst.

Today's strong bounce is in reaction that US and China will start some low level discussions with tariffs. This remains a market that will jump on any positive news. It is a good sentiment read of the bullishness in the US. I do believe raising cash into the upside DeMark exhaustion signals is essential. These are the first upside signals since January when I made the same out of consensus call to raise cash. A reversal is expected within the next 10 days. Breakouts with the presence of upside exhaustion signals tend to be false breakouts.

I'll be back on the desk at full capacity on Tuesday as I decided to take my wife to Nantucket for the weekend after we did the drop off at SMU. A little trip to our favorite place should soothe some of the sadness. It really is brutal when you send off your youngest. Thank God for FaceTime!

US Markets - Sentiment has faded and could diverge but big news are the upside Countdowns happening again
Hedge Fund Telemetry Trade Ideas - No changes
DAX - Downside DeMark Countdown exhaustion 13 today
Asian Market Update - Tough to catch the lows in China and Hong Kong
Crude Update - Drift lower
Gold Update - Another downside exhaustion in GLD and GDX finally but lets see some stability first
Bond Update - no changes
DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 1500 and Euro Stoxx 600 (a lot of downside exhaustion in Europe fyi)

Daily/Weekly DeMark upside/downside exhaustion signals (Sequential) weekly updated on Monday's and monthly on the first day of the new month. Price flips occur when a stock closes higher/lower than four previous closes and increases conviction of a price turn.

The upside 13's are sell signals and downside 13's are buy signals. Price flip's are confirmation signals that increases potential for a price trend change. For example, if you are long a stock and there is an upside 13, you will want to take cautious action by selling down or out of a position. If initiating a short sale with the upside 13's, we tend to start with a 1/2 size and add with the downside price flip. The opposite is true for when there are downside 13's. Take a 1/2 size position and add with the upside price flip.  The DeMark Indicators are designed to assist the user with buying into weakness and selling into strength to anticipate trend exhaustion. Selling into a rally and buying into a decline often afford the opportunity to exit a trade without too serious a loss if wrong.

S&P 1500 Universe:
DAILY UPSIDE 13: AEP, AMED, ATO, CMCSA, EPAY, OXM, PRA, REG, SCI, SSP, ANF, BKE, CNC, JKHY, RGS, SMP, TGT, WAB
DAILY DOWNSIDE 13: ATI, CEVA, IBKR, JAKK, LM, LRCX, OSK, TWI, URI, BK, BPFH, GM, GSM, IP, NCR, PNR, SWM, TOL, VECO

DAILY UPSIDE WITH PRICE FLIP REVERSAL DOWN: CMCSA, DMB, DPZ, EE, LDOS, OXM, QSII, TGT, URBN, BDX, ENDP
DAILY DOWNSIDE WITH PRICE FLIP REVERSAL UP: EL, ENS, PCH, SNV, CBOE, DRH, SMCI

Updated: 8/13/18
WEEKLY UPSIDE 13: BAC, BKE, CMG, EXPD, FE, FISV, HSII, JPM, MNRO, MTRX, POWL, RSG, TJX, ZTS, ZUMZ
WEEKLY DOWNSIDE 13: AHL

Updated: 8/1/18
MONTHLY UPSIDE 13:    AIZ, ATR, BIO, CBU, CDNS, CMS, CSX, DGX, EE, FCN, FIX, GTY, HAE, HAS, IDXX, IEX, KSU, MA, NI, NPK, PTC, RLI, ROL, WEC
MONTHLY DOWNSIDE 13:    CIR, HIBB

Euro Stoxx 600 Universe:
DAILY UPSIDE 13: LEG GR, GN DC, SKY LN, WDI GR
DAILY DOWNSIDE 13: ALO FP, ANTO LN, ATL IM, BMPS IM, RIO LN, STM IM, AAL LN, AENA SM, ATC NA, BLT LN, CBK GR, DAI GR, GBF GR, KGX GR, KPN NA, OERL SW, SAND SS, SGO FP, STERV FH, TLW LN, TRELB SS, ZOT SM

DAILY UPSIDE WITH PRICE FLIP REVERSAL DOWN: CAST SS, DWNI GR, ETL FP, MRW LN, PNN LN, SKY LN, SMWH LN, WDI GR, WKL NA
DAILY DOWNSIDE WITH PRICE FLIP REVERSAL UP: HUSQB SS

Updated: 8/13/18
WEEKLY UPSIDE 13:  RI FP
WEEKLY DOWNSIDE 13: NONE

Updated: 8/1/18
MONTHLY UPSIDE 13: TEMN SW
MONTHLY DOWNSIDE 13: CO FP, GETIB SS, RXL FP, TALK LN

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