Stocks Turn Lower Triggering A Sell Signal

As of yesterday the stock market was at a crossroads which meant that we should be patient and let the market decide which way it wants to go. Well today stocks have chosen which way they want to go and in my opinion that direction is South.

Above is a daily chart of the S&P500 and as you can see the short term uptrend has been broken today. The MACD in the lower panel has crossed lower triggering a sell signal. The downside objective for the stock market is a test of the July low.

One thing I might add is that some key groups and stocks were beginning to show weakness over the past few weeks such as INTC, AAPL, banks and semiconductors. Usually when banks and semis diverge from the market it's only a matter of time until the stock market reverses its trend and it appears that today was that day.