Ed, I've recently been looking at the major market averages too and I've noticed bearish divergences (sometimes daily, sometimes weekly, sometimes both) between my indicators and the underlying prices. It doesn't look good going forward. Whether it will be next week, next month or six months, I don't know but based on my experience with the indicators I follow, I wouldn't bet against the charts. The DJIA, Dow composite, OEX, Russell 1000 and 2000 show these warning divergences.
I'm paying CLOSE attention.
Arnie
P.S. When one predicts bearish turns, there's always the risk of
being called a chicken little (or just plain wrong). Well, I'm willing to take that risk as the only cost to me is the opportunity cost of the cash in my money market account. There's always the option to remain silent but those that know me know that I have a big mouth and I haven't been able to find a big enough foot to put in it. |
