In America:Dow Industrials -2.05%Dow Transports -2.42%SP500...

In America:

Dow Industrials -2.05%
Dow Transports -2.42%
SP500 -2.21%
Russell 2000 -1.51%
Nasdaq100 -3.15%

Comment: This has not been the week we expect leading up to Thanksgiving in America. Historically, it has an 80% chance of being up. Not this year.
NewHighs/NewLows 33/170. NL>NH. The NL figure has reached panic sell proportions, but is dropping from recent readings. I thought after last night's action we might see a NL figure in excess of 500 - but it's nothing like that. The New Highs has not dropped down to extreme low readings. There's still a little optimism there. Maybe it all has to disappear before the market turns up.

Technical Comment on the Dow Industrials:
The Dow finished at 11257.6. Opposite a Congestion Zone and close to oblique support
Indicators:
Stochastic: 6.9. Oversold
RSI.9 is at 29.7. Could go lower – but not much.
MACD Histogram. Below Zero. Negative.
MACD. Below Zero. Negative
CCI.14: -191.2. Very Oversold. Has flattened out.

I was a bit optimistic yesterday. Well – emotions are out now. But would you sell out at these levels with such poor technicals? Or – even worse, go short?

Here’s an update on VXX – Futures on the VIX Index (Volatility or Fear Index).

As Alice said: "Curiouser and curiouser."

I mentioned yesterday that VXX and VIX trend inversely to the broad market indices. Up is bad for the stock market, down is good for the stock market. The VXX was in an upsloping wedge. These normally break to the down side. Two nights ago, VXX broke marginally below the wedge, but last night it crept back inside. (Marginal breaks should never be taken as signals.) But we’re not seeing any major push up yet. This non-confirmation must be resolved. Maybe we have to see a major push up in the VXX before this down trend can end. On the other hand ……. maybe the Dow has to get back into kilter with the futures.

The trend is down. You know the story – the trend is the trend is the trend until the bend at the end.

Redbacka