SP500: [IMG] "Sell in May, go away." We've all heard that...

SP500:



"Sell in May, go away."

We've all heard that saying. So, Is it time to sell? Jeffrey Hirsch, editor of the Stock Trader's Almanac, has added an additional signal. Wait for a cross by the MACD below its signal line. That happened in last night's session.

The suggestion is that one should sell one's losers (not jettison the lot) and switch into bonds and utilities.

So, Is it time to sell? Maybe. But you could be jumping the gun. SP500 remains in a sideways drift between the 50-Day MA and the 200-Day MA. A break one way or the other should decide future direction. Wait.

VIX



VIX continues to hold in a descending triangle - which normally breaks to the downside - positive for stocks. It is holding above the 15 level. If it breaks below the 15 level, that would be bullish for stocks - so hold off any selling. If it breaks above the oblique restraining line - sell.