“Further ‘bear market’ evidence would be on the table should the imminent death-cross prove successful in the weeks ahead,” Coe wrote in a newsletter Friday, adding the signal should print early next week.
The technical analyst also pointed out a bearish cross in an industrial sector ETF.
“Industrial Select Sector SPDR Fund (NYSEArca: XLI) has been leading to the downside since the start of this rout. The relative chart against the S&P 500 has fallen off a cliff since early July,” he said. “This sector has just printed its death-cross. The first since June 2008, a sell signal which proved genuine.” [Leadership Shift in Sector ETFs]
