Our trenders, as you will see, have turned neutral on us. We think this time we will eventually get a bearish reading and are expecting to see the markets drop into a rallying bottom in mid-August.
That would put our Zweig in to oversold, which we would like to see:
It would allow this Head and Shoulders pattern to play out:
Our 40 DPI has traveled below a 15 DMA for the first time since the June 1st bottom:
New High / New Low has not given up the 40 yet.. watch for that bearish confirmation:
We lost the trenders yesterday, both have moved to the neutral camp. If we get some negative follow-through, we will get our first Bearish trend indicator since May.