Today's price action showed sp500 bullish percentage index crossed down its own EMA 20. It is a sell signal. However, it does not mean there is no price rebound after this sell signal. The sell signal only means the trend start to go side way and drift down. The same sell signal happened on AAII sentiment indicator: the bull vs bear. These 2 signals lined up together now. And this signal pattern showed up in last Sep. pull back too. How to use this signal? This is a short term trading signal, not a day trading signal. The strategy is take profit or short the rip. In case the index break out 2300, the stop still need to be put in.
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