biotechmgr (99.57)

Time to Feed the Bears

October 28, 2009 – Comments (0) | RELATED TICKERS: SDS

A stock market trend change was signalled today, adding confirming evidence to a lasting top. The technical indicators are as follows:

 NYSE Breadth (Advancers:Decliners) in the final advances to top weakened to 2.98:1, then 2.8:1, then 2.05:1. Buying climaxes increased in this time period.

 90% down volume day today, closing very near the low.

 2 distribution days, down on increasing volume, in past 3 days.

Knifed through support and trendlines - keys being SPX1053 support and a main lower uptrend line from March low. I'm not a 50 MA guy, but it went through it too which means a lot to many market watchers.

Today had all the hallmarks of a Wave 3 at a beginning degree, Elliott Wavers.

 And just for fun, tomorrow is the 80th anniversary of October 29 crash...

Will there be a bounce? Yes. But the market has produced clear indicators of a rollover from which the next correction upward should produce a short trade opportunity, or a chance to exit longs if you have them.

Extrapolating the end of this move down and a corrective bounce back up: Beware the ides of November (approximately).