Breadth for the day ended at 1.45:1 advancers, again on low volume. As the advancing issues decline, day, after day, it just shows, that fewer and fewer stocks are making higher highs, to help push the market higher. And when that balance fails, that leads to a sell-off on high volume and breadth as the bulls rush to save their profits, creating that cascading type of sell-off we have seen after every major top in the last year.
7:40, It is hard to say with any conviction if the top has been put in, there are just too many different ways to count this correction to be certain of any one count. A break below 1094.72 along with seeing the VIX break-out, would be the first technical signs that the up-trend is in serious jeopardy. The 60 minute charts are on a sell, and the dailies are up into over-bought territory and very close to rolling over. Until we start making lower lows, the trend remains up. Breadth currently is running 1.18:1, decliners.
With the market working its way lower this morning, the VIX has remained inside the falling bullish wedge, and is up against resistance right now, when it manages to break-out, the indexes should go into a major sell-off.
6:47, The SPX recovered from the lows overnight, but did break down below one of the lines of the Fib fan, which should now act as resistance.