Here is the S&P500 Index (^GSPC). The Primary Indicator is well below the lower green line. In general, once this happens there are only two instances where traders would reverse positions and go long:

1. If the Primary Indicator makes a higher low. Not going to happen here.

2. On the second occasion the Secondary Indicator crosses the zero line negative to positive.

If we look at the Secondary Indicator we’ll see it has not made a zero crossover yet. At this stage, if you're a trader, any time the red dotted line (raw indicator) crosses below the blue line (smoothed indicator) it’s normally a signal to add to your short position. Just looking at the daily charts, the S&P will retrace to the upside but will turn lower. However, a check of the weekly charts shows the Secondary Indicator has only crossed zero for the first time but the Primary Indicator still looks strong. Traders, no time to get aggressive to the downside. Investors, the longer term cycle is up.