Going into the day, the week, and now the new month, a couple technical measures signaling trouble for some time now likewise apparently are trumping other measures suggesting the market is "oversold." First is $VIX momentum (bottom panel), which is both positive and continues to rise. The other is $BPNYA relative strength (top panel), which has remained in the death zone (i.e. < 30) for nearly two months now. These combine in the face of long-developing technical deterioration to deliver a day like today confirming the worst is probably yet to arrive...
Big daddy falls below its 200-day moving average while its momentum (bottom panel) accelerates yet lower. Now that's trouble confirmed.
Surprisingly, though, today on the NYSE was only the fourth worst day of 2012. Yet on a day finding the market entirely on its back, less than perfectly washed out internals rather suggest there is but more pain ahead.
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