The bears finally came through and had a bull slaughter today. 900 was broken and now the key support is 880-875 area.
More importantly the internals are now in favor to the bears. I've been harping on $NYMO since I started this blog. You could easily assume that $NYMO was going to be below zero today just by looking at the Advancers/Decliners today. Here is the end of the day $NYAD:
Decliners were in full force today. This sell-off affected the $NYMO, it pushed it well below zero. When the $NYMO moves below zero it provides a short-term sell signal. Take note of each time the NYMO has gone below zero.
Now NYMO is a short-term signal. $NYSI is a longer-term signal. NYSI finally turned negative today. Look at what at the markets reaction when the summation index turns negative. The more bearish signal will be if $NYSI crosses zero.
