Update October 21st, 2009

5:55pm

Every indicator dropped today for each of the SG’s. The SG for $COMPQ suffered more damage than the SG for the $SPX.
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Current status for the $SPX:

Confirmed, Phase IV sell signal.
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Current status for the $COMPQ:

Partially confirmed, Phase III sell signal.

The D Indicator for the $COMPQ is still in bullish territory. Unless there is a mega rally tomorrow, this indicator should drop back into bearish territory and then the SG for the $COMPQ will go to a fully confirmed sell.

Many, if not all, of the financial ETF’s and sectors closed out the session below their lows from last week. $RLX and the $RUT suffered the same fate. Of the major sectors, the $TRAN took the biggest hit but the $SOX didn’t hold up all that well, either. There were slight increases in volume for the $SPX, $INDU, & the $NYA, but the $COMPQ and the IWM saw some fairly substantial increases in volume.

The pull back that I’ve been expecting since last week is now here. I don’t know how long it will last or how far it will drop. The SG’s had increased signs of negative strength today and once this starts in earnest it usually goes on for a few days.

I am long DRV from yesterday and I have to tell you if I didn’t have the SG, I would have bailed early in the session. And look at TZA. I had that sucker at $11.01.

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