We did get more downside testing today with a close under last week's low. That is a pretty negative outcome, but the 5ma of the TRIN has now moved back to a level associated with bottoms over the last 3 years. Also, the McClellan oscillator is again oversold. The % of stocks above the 50ma remains well above 50%, which is also a positive. We may see some more downside tomorrow, but unless we see a positive close on rising volume soon we will have to conclude that a much deeper correction is in progress. Even so, as long as the 11/25 low holds, the outcome should be positive.
I added the Qs on today's decline near the low. We'll see if the market manages to rally tomorrow. I also have some orders in for potential breakouts should they occur. One possibility is SCSS which was mentioned this morning in IBD and has formed a cup and handle base on top of a larger double bottom base that triggered a buy signal on 10/20. The new buy trigger price on SCSS is 21.24. Be sure and use a stop.