So we have seen the market top per IPM Model top date (scenario 2), as mentioned in the last blog post. Today's decline is broad based and ranges from Russell 2000 to Nasdaq. Market top took place within the current IPM turn window (Oct 7, 2013), and during this top date SP500 & DJIA put in a lower high.
Now the question is when is the market going to bottom & has the trend changed? And is this time to go short?
According to IPM Trading model:
Short Trade in an Uptrend = If next IPM Turn window is a bottom. If next turn window is schedule to be a top then no trade
IPM Model update will be sent over the coming week, and will highlight the next IPM turn date & whether it will be a top or bottom. I will try to send it out earlier!
Please note that bottoming signs have started to appear, and its possible that market might soon bottom with the earnings season / resolution of the Debt ceiling issue. We will use IPM trading model and the associated proprietary triggers to enter the long trade.