Technical owie

Today's post-fed reversal looks to be a bad sign for the markets. Rarely does the next day follow through, but our chances of continued selling seems higher now.

There's a new hurricane on the way. I think it's time to get ready to SHORT, yes, that's SHORT oil once this hurricane passes. I believe that the latest surge in buying on nothing but the fear that this hurricane will be another katrina is wrong. And, I believe that the surge in buying will leave many investors on the wrong side of the markets - and lead to capitulation (mass selling). I could be wrong. Next week will be interesting, as Rita seems determined to make me wrong - she's gaining steam and is now a Cat 4 'cane.

Back to the technical owie. Look at this chart (chart courtesy of Stockcharts.com):


This is the third time the Nasdaq has hit this level. The MACD lines are showing a triple negative divergence on the Index. That's not a good signal for the markets as a whole. This RARELY sets up. And when it does, look out below.