You can look at this chart at least two ways...1) MACD is coiling for a move (one way or the other), ROC has bullish divergence and the thing has the look of a grinding bullish consolidation. In other words, one can be poised for a bullish break out above the noted downtrend line or
2) We will get another in a line of buying opportunities that this market has been generous enough to present. This would be signaled by an RSI near 30 and if bullish divergence in the indicators were to persist, so much the better. The beauty of corrections, especially in this sector, is that they tend to drain the spirits of the majority at the precise time that they should be getting bullish.
I remain ready for either of these scenarios; a break of the downtrend line to the upside - which would be a big time positive signal - or continued correction, which is becoming less and less likely as the broad market poops itself led by a Banking Index on life support and the Trannies (and all those Dow theory bulls) megaphone. Caveat: There are still some casino patrons carrying on in a bullish manner, notably in the small caps. But even there the RUT & SML action has the look of bearish rising wedges.
