Well yesterday's Secondary Indicator in the S&P500 (^GSPC) did not cross zero. However, today's action, so far, has the zero crossover. As I’ve said, for traders it may be time to close out but not go short because……

 ….the Primary Indicator for the weekly chart looks strong, while the Secondary Indicator has one crossover but is way off the zero. Don’t go against the flow.

What about other indices? Both the Russell 2000 (^RUT) and SPDR DJIA (DIA) had their Secondary Indicator make a second crossover below the zero line. Here’s the Russell 2000: Here’s the DIA:

But look at the weekly charts for the Russell and DJIA. Here’s the Russell and it displays another factor to watch out for. When the Primary Indicator drops below zero, having been above the green line, then retraces above zero but makes a lower high it normally means it’s going lower. When you get this, you have to check your longer indicator (monthly) before going short.

Here’s weekly chart for DIA which looks much better than the Russell, but it did retrace from below zero and make two lower highs. Normally, this would indicate a sell off but you have to check DIA’s monthly chart to find it shows no sign of breaking down.

Lastly, there’s the NASDAQ 100 (^NDX). The daily Secondary Indicator has only made one crossover of zero and the weekly Primary Indicator has retraced from below zero but with no lower high to indicate a change of direction. In this case, we need to watch out for the lower high/the Secondary Indicator making a zero crossover twice.

The ^NDX monthly chart looks strong. Here’s the Primary Indicator and the Secondary Indicator has not made any zero crossovers on this upleg.