Many went into a state of shock when the market dropped. The S&P 500 went into an immediate downward trend by 5%. The Dow dove by 1600 points. Considering the record high amounts and the confidence, this came as a surprise to almost everyone.
Except for those who were prepared for the downward trend.
Leading indicators were able to show the reversal in the market as early as January 26th, more than a week before it happened. They were able to secure their trades and investments while noting that the neutral zones and the downward turn were going to create a shift in the stock market.
The leading indicators worked from two different levels. The first was with buy and sell signals. This indicated that there was going to be a neutral zone and a pivot point in the market. These let traders and investors know the zones to buy and sell before the market shifted.
The second level established trends as they went into a neutral zone and predicted when they would move into a downtrend. These identified the alterations before it happened and alerted those in the market to the shift.
While the market is now moving up by 1% and is not as volatile, it is still in a correctional zone. There are now risks established within the market. At the same time, many are looking at entry points with the correctional market. However, this is a higher risk than the past.
Determining possible volatility is essential to strategies now. Those who use leading indicators will have the ability to identify what is happening in the market while establishing security in the market.
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How Leading Indicators Predicted the Market Turn
See how the market turn was predicted before it happened. This shows the two levels of indicators, one which indicated the pivot points of buy and sell signals, and the second which defined the trends moving into a neutral zone, all before it happened.