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Saturday, November 28, 2009
Follow the Leader?
The Nikkie is now only 35 points from breaking the low set back in July, and seems to be in full crash mode now.
Over the last three month period there have been some startling changes happening through-out the markets. To me this is one the most significant, the strongest indexes at the beginning of the rallies peaked first, then have turned into the weakest, and they are starting to accelerate to the downside. These two charts should be very large warning signs complete with blinking lights to the bulls, that things have changed. The leading indexes at the beginning of the rally, are most likely to be the leading indexes in the sell-off. Everyday I have been posting charts of the Russell, comparing it to the SPX trying to showing that gap between the two keeps getting larger. On Friday as the SPX was recouping some of its loses, the Russell ended up closing at the low of the day. Until this trend changes, I will stay bearish!!!
I am working on updating the charts I posted in last weeks, Week-end Updates, and plan on posting them Sunday morning.