Bombs Away ~ The Risk Averse Alert

Monday, October 03, 2011

Bombs Away

Perfectly in synch with early-August was today's technical confirmation of increasing market weakness...


The NYSE Bullish Percent Index today took out its August low, thereby confirming the market's decline below August lows and indicating further weakness quite likely is in store.

Then there's $BPNYA's RSI once again falling below 30: a consistent indicator of underlying technical weakness coincident with market declines over recent years.

On one hand the market is extraordinarily vulnerable. On the other it is considerably oversold. That's probably why the market's decline since last Tuesday's peak (9/27), relatively speaking, has been fairly well-contained...

SPX 5-min

We'll probably be nearer a short-term bottom when a decline like Wednesday-Thursday, 9/21 - 9/22, unfolds over hours ahead. Could be tomorrow. Today was worse than last week's bad. It's a pretty sure bet any rally at this point will be quickly sold. Bombs away.

Fast Money
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