market

All signs point to a deeper correction
The S&P 500 resistance at 1055-1065 was respected and the uptrend line in
place since the July low has been broken. Short-term indicators are approaching
oversold levels, but intermediate indicators remain overbought. More importantly,
our volume models remain negative - the Volume Intensity Model (VIM) continues
to point to more selling than buying. On October 1 the market sold off sharply
generating a 90% down day on higher volume – another sign the market is under
distribution (selling). Breadth is also not supportive with our advance-decline line
diffusion indicator never confirming the recent recovery highs. Risk measures,
such as the EURJPY currency pair, are pointing to further de-risking, and the ratio
of stocks versus bonds now clearly favors bonds.

Someone posted this in the live chat and I thought it was interesting.  While I'm not politically active nor would I say I am a member of a particular party this really surpised me to see this.

Once again, market proves to be as crazy as a fox when it comes to volatiliy. Usually as the volatility picks up, it rarely ends with a big rally. Normally at some point you get the capitulation phase and big down, then its done. I think we are close to that capitulation point, should happen in the next few weeks.