Selling Hits SPY, AAPL and GS

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Selling pressure was heavy today and US equity markets.  SPY was down nearly 1% and Apple (AAPL) closed down .53% even after reporting solid earnings and a positive outlook.  Goldman Sachs (GS) suffered even heavier losses today, down 4.69%.

So what does this mean and where does it leave equity investors? Are precious metals next? The long-term trend in SPY is still clearly positive.  However, today's selling may be an early warning that price action is could start to shift to more of a sideways to negative action in the short to intermediate term. Chris Vermeulen--who tends to focus on short to intermediate trends--sees distribution starting to occur with a potential market top looming as he stated today (chart compliments of The Gold and Oil Guy):

Here you can see my green panic selling indicator spiking up much higher than normal dwarfing the past sell off spikes. This makes me think the big money is now starting to unload which will shift the current upward momentum to more of a sideways whipsaw type of price action. Eventually it will roll over and a new down trend will start.

 As you can see from this chart the SP500 is trading down at a support level so a bounce is likely going to take place. If in fact today was the first distribution day then the big money should let the price inflate back up to the recent highs and possibly make a new high to help keep investors bullish before the hit their SELL BUTTON again… They like to play these games and understanding them is a key part of trading. Expect choppy price action for a week or two.

He also sees some of the action in the precious metals sector.  SLV (Silver ETF) is struggling to hold its 50 day moving average, a key indicator of intermediate trend. A break below the 50 moving average could put further pressure on the precious metal (chart compliments of The Gold and Oil Guy):


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