Wednesday, August 11, 2010

Market Becoming Oversold

Today the NYSE Trin closed at 6.50. Only June 4th was higher since the correction began with a close at 12.46. The market bottomed two trading days later on June 8th. Volume today was lighter than at the previous swing low on July 30. The equity only put/call ratio also seems to be heading toward an oversold condition as well as the McClellan Oscillator. These factors support the [x] wave interpretation of this week's decline, so far. We will need to see a reversal by Monday to conclude that this is in fact an [x] wave.

It looks like there will be a minor degree 5th wave down to complete wave (c) of [x] tomorrow, which may complete the selloff. Let's hope so as the damage has been severe.

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