The list of stocks breaking support was too long to include in this report. The Up/Down ratio fell from 0.13 to (23/453=) 0.05. This is the lowest level for the Up/Down ratio since 2002 when U.S. equity markets bottomed. However, signs of a bottom this time have yet to surface.
The “Fear Index” spiked yesterday to the highest level seen since June 2010. The VIX Index has spiked over 35% on four previous occasions during the past four years. Each spike above 35% recorded a significant short covering rally after the peak had been reached. However, VIX closed at its high yesterday implying that the peak has yet to be reached this time.
I expect that the market's will generate the signals Don is looking for sometime this week. So keep your eye on the market and on Don's site to find a good buying opportunity.
See the full report here: http://www.timingthemarket.ca/techtalk/2011/08/09/tech-talk-for-tuesday-august-9th-2011/