Despite some of the best days every, the S&P 500 has lost more than 12% during the last 2 months.

The 3 months before that, it had lost already 5% since its peak end of April.

This situation is a good example that trend signals are not capable to tell you if the market is at its top.

But long-term trend signals can tell you when the long-term trend has turned down.

Nobody knew in May orJune that April was the peak.

But at the end of July, our long-term trend signals for the US market told us that the trend was going down.

Following these trend signals could not have saved you the 5% decline from May till July... but it could have helped you to escape the 12% decline of the last 2 months.

Read here more about the different long-term trend signals that we use to analzye the S&P 500 and other stock market indices.