I mentioned when we began to short the US stock market indices that the volatility would most likely get pretty insane and staying in the saddle would be pretty hard to do. If these potential topping patterns play out we will see big down days followed by equally big up days which is the hallmark for the beginning phase of a bear market. The bulls and bears keep fighting it out but slowly the bears will take control and once the breaking out and backtesting process is finished you get the impulse move to the downside. Normally a stock will go down faster than it went up

This last chart is the long term daily line chart which shows the indexes still trading below their neckline or S&R line except for the Transportation average. Are the US stock markets in the early stages of a decent correction within the secular bull market or is something more sinister brewing? Stay tuned. All the best…Rambus