If you’re bearish (Fish-hook edition)

Two weeks ago, I posted the NYSE Summation index and pointed out that it was rolling over.  That was a good clue to the sell off that was about to begin.  Yesterday, the Summation index began rolling over again.  Tom McClellan, who’s father invented the indicator, calls this a "fish-hook," since it looks like a fishing line hanging below the zero line.  It could be an indication that this market has one more downdraft in it. 

Nyse_summation_102705

In addition, the NDX will hit a DeMark Sequential TM 9 Sell today. 

Ndx_102705

The VIX also hit a DeMark Sequential TM 9 Buy, although that indicates higher volatility which usually occurs during down markets. 

Vix_102705

Finally, the major averages now appear to be testing the underside of topping formations that they broke down from.  It’s a lot of overhead resistance to work through ob the first try. 

Comp_102705_triangle

Rut_102705

It looks to me that the market needs to make another stab lower before finding a more durable bottom. 

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