At this point, all the indicators are in gear on the downside. With the market still in an overbought condition, we can expect the market to continue on its downward path. The best thing this market can do is have a clean-out bottom. That will require more downside action and, more importantly, much more bearish sentiment.
The bearish sentiment does seem to be slowly creeping in. The chatter on
was quite subdued late in the day. Reading the newspaper, you'd think the
was down a zillion, not 200. It needs to get more intense before it can get better.
New Highs and New Lows
Cumulative Advance/Decline Line
Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in the stocks mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at