Are we there yet?!? part 2
Most likely, yes. Positively, no, we have not recieved all of the signs we were awaiting. But, on a lighter note, we have registered enough to be able to comfortably call the decline in place upon further weakness. You follow?
Let me review…We have the $VIX turning up from a bounce off of a minor resistance, that’s bearish.
We have the $SPX and $INDU, and a horizontal trendline in $SPX. That’s a two-fer today, and that’s bearish.
Those of you who know me, know that I keep a real close eye on the breadth, measured by advancing and declining issues, of the major indexes. Today was a beautiful sight when glancing at my daily “breadth-o-meter.” Here’s what I saw today. By the way….it’s bearish!!
Notice the two blue boxes. The first one is breadth, read as a straight percentage for negative issues (i.e. $INDU had 100% negative breath, all issues were declining). Anything over 3:1 in either direction is major, and we were sporting about 4:1 negative across the board today. The second blue box is a volume ratio. The larger the number, the more negative the volume. Notice the 120%+ on the $OEX, can someone say “large scale liquidation?” What a great day to start the week off.
Let me finish by clarifying my timeframe of the earlier targets. This targets should take a couple of weeks for the markets to reach, not likely extending past 2 months. And, as I stated earlier, these represent only preliminary targets, and the final resolution targets remain significantly lower. Lastly, the market rarely moves straight in one direction…be prepared for some wild whip-saw rides as we come crashing down, and keep in mind that the steepest rallies occur in bear markets.
So I leave you today with a quick haiku, as we are simply waiting for one last confirmation.
Lone bear atop a
hill – waves crashing below.