Market bearish reversal indicators

Long positions in the stock market should be scaled back when two or more of these indicators are flashing red.

1. The 50-week MA on the weekly CBOE Options Put/Call ratio can be used to detect when excessive bullishness has reached its maximum.  When the line crosses above 1.0, it suggests it's time to get out. (When it crosses back below one, it may be time to get back in.)
2. When the 20-week MA of the weekly Percentage of NYSE stock above their 200-day MA ($NYA200R) falls below 50, it's a good indicator that trouble lies ahead.
3. When the Wm%(63) of the weekly S&P 500 drops below -50, it may be time to get out, especially if confirmed by a drop below 0 of CMF(63) and ROC(63).
4. When the market drops 16% from a recent high, it's a good indicator that a bear market has started and it's best to get out to limit the loss.
5. One dip of the NYSE High-Low index ($RHNYA) below 9 is a warning sign. Two dips in less than 3 months are a red alert, and they suggest it's time to get out.

These are the last times these signals were given, in order by date:

Date     $SPX Signal
08/06/07 1467 $RHNYA
09/07/07 1453 $CPC
11/12/07 1439 $NYA200R
11/21/07 1416 $RHNYA
12/31/07 1468 Wm%R(63)
01/22/08 1310 16% drop
01/23/08 1338 $RHNYA
07/03/08 1262 $RHNYA

It's interesting that the NYSE High-Low index was the first and the last to give bearish signals.  The last one it gave was only two months before the market crash of October 2008. If the first five signals had been used as sell signals, an investor would have progressively moved out of $SPX and into cash from August to December 2007.