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 a nice retest and a turn up in call put ratio, that’s bearish too.

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.

Furious beauty.

Skol!