An indicator followed by veteran technical analyst John Roque that has perfect results for almost twenty years just flashed a buy signal. The beauty of Roque's indicator, which has signaled positive returns three months out every time from its trigger point, is in its simplicity.The fact is that the market is very and a good opportunity to buy stocks on sale is starting to present its self, probably sometime this week. However, there is something you need to understand:
"Extreme readings in this indicator (so far) have a perfect record with respect to market rallies both two weeks and three months later," wrote WJB Capital's Roque, a respected staple of the technical analysis community, in a note. "We still think this market has issues, notably with the industrial sector, but we're putting our trust in this indicator/data near term."The major reason the markets are going down, is because the chance of going into a recession is higher. So, buying should be seen as a short term play.