GNM - That last bar is a "POTENTIAL selling climax." It is a down bar dipping down into fresh low ground on ultra high volume closing high (this is a potential Sign of strength). There must be SOME buying there because otherwise it couldn't close on the high. This of course needs to be confirmed by a HIGHER close today (not looking good so far). BUT if we dont close a lot lower than yesterdays low and volume is still very high then we may have a potential shortening of the thrust where price is low enough to become attractive to the pros. This doesn't mean its ready to rally but it could knock it sideways. But as I said we need to see where it closes today - If it closes level or higher than yesterdays close then that would signal buying coming in at the bottom. Of course if it continues to break down then this will actually act as a resistance area to price going back up.
Click on the bottom PDF in my Sig and go to page 123 - that will give you a comprehensive description of a "Potential selling climax."
