NVDA (and our #1 chart) say decline coming

Answer(s) inside.   Editor’s Note: Our Resident Digital Currency Expert – Marco Wutzer is issuing a critical market update and you're invited. In a special interview with Chris Rowe, Marco will reveal, the top coins that every investor should own right now – each Marco believes could return 1,000% or more. [The 3-Stage Genesis Cycle - save your spot by clicking here.]( Clicking the link above automatically registers you for The 3-Stage Genesis Cycle. By reserving your spot, you will receive event updates and offers. We will not share your email address with anyone. And you can opt-out at any time. [Privacy Policy](.   Hi Reader, Good morning, Bill Spencer here… Our #1 indicator just made a bullish move, and you need to know about it. The Move: A bullish reversal from an O-column into an X-column. When It Happened: Friday, August 23, 2024 Amount of Time Since Previous Column Change: 18 days Interpretation: The market should now be considered Strong over the short term. The New York Stock Exchange Bullish Percent Index (NYSE BPI) is one of our most important indicators for seeing the market's trend and condition. A by-the-book interpretation of this most recent move tells us that the market should be considered strong over the short term, but weak over the long term. As you learn more about the mechanics of the BPI (and we send updates about it frequently) you’ll see why it’s so important, and why you should interpret it differently under various scenarios. You'll see, for instance, how the BPI's column gives the shorter-term interpretation while the signal gives the longer-term. Coming off a long-term market bottom you would interpret a reversal from a bearish O-column into an X-column one way. Coming off a long-term top you would interpret an O's-to-X' reversal differently. We are NOT coming off a long-term bottom right now. Quite the opposite. The market bottomed in late October, but we began seeing signs of the next bull market months earlier, in May of 2023 when trillions of dollars in value migrated out of cash, commodities and fixed income and into US stocks. Since then, except for a short period between late October and early December 2023, US stocks have been the #1 strongest asset class out of the six asset classes we monitor. (The others are International Equities, ie, "foreign stocks") Commodities, Fixed Income, Cash, and Currencies.) Asset class rankings tend to stay in place for a long time, often for years. So when all that value flooded US stocks, we had a very strong reason to expect that a long-term bull market was underway. I mention this because even during bull markets, prices move higher and lower in zig-zag fashion. And right now we're seeing signs that the market might want to go lower. Here's a one-year chart of SPY, the ETF that serves as our proxy for the wider US stock market (it tracks the S&P 500). The red highlighted areas are places where the market declined. The green highlighted areas show times when the market moved higher or sideways. Notice the volume bars at the bottom. You can see how as the market advanced it did so on light (unconvincing) volume. When the market declined it tended to do so on much heavier volume. Of course, the market has made new highs recently. Right now it stands just 0.7% from its most recent all-time high. And yet... there's that shallow volume on the way up and that heavier volume on the way down... Last Tuesday, TMI Founder Chris Rowe got into this price volume dynamic when he looked at Nvidia (NVDA). He said... "The fact that the stock has risen on such low volume indicates it's not rising because of some sort of overwhelming buying pressure. It's not like prices had to adjust higher because the sellers were cleared out by anxious buyers. It typically is what happens when sellers just aren't selling as aggressively. They are seeing how high the stock will go before they start selling again." "The high volume on the way down shows what investors are really feeling." The same goes for the wider market. Saying that there's some indication that a dip might be coming isn't to say the sky is falling and that you should sell everything. And the fact that the BPI moved to X's isn't a sign to back up the truck. It is to say that we need to respect that price/volume indication. At the same time, we have to respect that our #1 indicator just made a bullish move. In situations like this, the play is to be cautious but not overly bearish. Sell some laggards to raise cash. Get some bearish exposure in case a decline does come. When price/volume action (among other things) shows that the market is heading higher on the backs of bulls that have conviction on their side... You can put that cash you raised into new bullish positions or add to positions that were strong on the way up and held their own during the decline. The NYSE BPI is, first, a barometer of risk. It tells us whether bulls or bears are in danger, so to speak. Right now going "by the book" the BPI says that risk is to the bears over the short term and to the bulls over the long term. But we want to temper any robotic or dogmatic interpretation with other indications, such as the price action on the SPY and the unmistakable long-term strength shown by US stocks. Again, you will benefit a lot by reading previous updates on this page. And check your email for future updates that will be posted whenever the NYSE BPI does something important. If the chart, say, goes on a new Buy signal, we'll update the page. If it flips back to O's we'll update the page. Thanks for reading! Bill Spencer True Market Insiders [YouTube]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( DISCLAIMER ©2024 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: True Market Insiders, 7901 4th St. N STE 6113 St. Petersburg, FL 33702. The information contained herein has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. 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