The stock market is about to trigger a “SELL” on its monthly MACD.

If you’re unfamiliar with the MACD is stands for moving average convergence/divergence. It’s a technical indicator that is used to monitor momentum in the stock market.

The way it works is quite technical, so to keep things simple here, you can think of the MACD as illustrating when short-term momentum shifts versus the long-term trend in the stock market. When short-term momentum breaks down against the long-term trend, it signals a “sell,” and when short-term momentum breaks out to the upside against the long-term trend, it signals “buy.”

In a nutshell, the MACD is a fantastic means of catching MAJOR market turns. You can apply it to any time frame: hourly, weekly, even monthly. But when you use it on a monthly chart, it’s one of, if not THE best means of timing bull and bear markets.

Let me show you.

The below chart shows the S&P 500 and its monthly MACD back in 2022. The short-term momentum indicator is represented by the black line in the lower box. And the longer-term trend is represented by the red line.

As you can see, the black line broke below the red line in early 2022, signaling that short-term momentum was breaking down against the longer-term trend. This was a SELL signal.  And sure enough, what followed was a 12-month bear market that saw stocks lose almost 30%!

Anyone who noted the “Sell” signal in early 2022 and moved to the sidelines avoided a WORLD of pain.

So, what is the Monthly MACD saying now?

It’s right on the verge of signaling another SELL signal. This is a MAJOR warning to stock market investors that stocks are in VERY serious danger of entering another MAJOR bear market.

If you’ve yet to prepare for this, the time to act is NOW before the bear market hits.

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