Ok, as I said in Tuesday post, bailing is approved. In the chart above I wanted to show a little of the recent past to show exactly where we are at in this break down. The major point to take away from this is the the primary Green Uptrend is now broken. Second, the CBL or red horizontal is broken. Now if you look closely, price is below the 50 day moving averages and they are also turning down. So today just confirmed Tuesday statement.
I could not make the move on my own personal funds because my gut, which does not have a very good batting average, was telling me we were going to bounce off $1420. Second thought process was the fact that I felt we were oversold. If you click the little picture in this paragraph you will see what I mean oversold. What is underlying here, in case you are not following the markets closely, is that company earning reports so far this quarter have really been off the mark. Everything is screaming to exit, so I should be listening as should you.
Small Cap. The only thing that might give us a little hope here is that not everything is broken. The Green Uptrend Line is still intact, but man it is close. CBL and 50 day moving average has been lost.
Who would thought that the International Index would be the best of the 3 indexes? Not me, but right now it is holding up pretty well compared to the other two. Price is very close to breaking down, so do not take this the wrong way. Price is slightly below the Green up trend line but is above the CBL and 50 day moving averages. If your in this index, I would hold on.
Some more notes to digest. Price on the DOW 30 is below the 50 day moving averages and they are starting to turn down. The nasdaq is the worst of the them all and is helping to confirm the pain. Of all the major select industries that I rarely speak of here, only the Health and Financial sectors are doing well. The six other major indexes, price is below the 50 day.
http://stockcharts.com/h-sc/ui?s=$NYA200R&p=D&b=5&g=0&id=p61370423001
http://stockcharts.com/h-sc/ui?s=$OEXA200R&p=D&b=5&g=0&id=p36177834754
http://stockcharts.com/h-sc/ui?s=$OEXA150R&p=D&b=5&g=0&id=p36177834754
If you click those links above, you will see price is heading toward to bailout point. If we cross the horizontal line, it is a definite get the hell out of dodge. So there is nothing really bright to hang our hats on here other than a bounce off the Over Sold conditions that we currently have.
Conclusion, I cannot see any reason to be in the markets as of Tuesday and Wednesday. There is only one chance that I see that things will reverse anytime soon and that is the Oversold condition and buyers come bottom fishing. So, from this post forward, if you stay in do not whine to me, you have been informed, but if you decide to ride it out as I probably will unless it just takes a massive dump by 11:45 Thursday morning, expect some pain.
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