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Was updating the charts after the close today and this one stuck out as
something potentially significant. Its a take off on how AIQ combined NYA
volume with the DJIA to create the On Balance Volume indicator. Note what
the OBV is doing, i.e. trending below the lower Bollenger Band. Also note
its level compared to last summer's high and note how it is below last
October's low. And note that the DJIA failed at the 200 day MA today.
Another thing, if you go back in history, the major drops were preceded by
an erosion in breadth and did not suddenly happen unnoticed by a few. The
majority were in the buy and hold, can't go much lower mentality which turns
to disbelief in a climatic selloff. This situation sort of has that feel.
In short, that OBV just looks downright ugly.
bobr
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