big trouble people!! Look at chart below!!Wednesday, August...

big trouble people!! Look at chart below!!

Wednesday, August 15th. Charts and analysis are below the Quick Summary.


1. The VIX-MACD shows no indication of the VIX being ready to drop. So, this means that fear
levels remain high and may go higher. See charts A, B, and C.

2. Super Accelerators remain in a down condition. Definitely remain in cash on the long side.
3. Our Institutional index closed below its 1 year support level yesterday which is not a good sign.
Institutions remain in Net distribution. The Buy to Sell gap has closed half its distance,
but distribution is distribution ... which means net outflows. The increased amount of buying
might be saying that the selling is past the half way point, but "end of month sub-prime loss disclosures"
could change this quickly as institutions find themselves re-evaluating the situation.

4: Institutional Index

Today's Reading: The value of the top 75 Institutional "core holdings" dropped below
its 1 year support line. If it can't move back up in the next few days, it will spell
more trouble coming within the next few weeks.

Conclusion: This drop now raises the risk for a more serious correction in the market
unless the Index moves back up over resistance in the next two to three days.





5: Overall Market Condition ...

Today's Reading:
a.) Strength: Strength is negative and trending down.
b.) Up/Down Trending is negative and of concern. Risk levels remain very high. Note the two
black arrows showing the gap that has to be closed by the upside trending to give any kind
of sustainable up move. As long as that gap is there, there is still more downside weakness
than upside strength.
c.) Hybrid S.T. Accelerator is still moving down.

Conclusion: The market is showing a continued weakness. This remains a very high risk condition
from a medium to longer term perspective. Remain in cash.