More on this...

I wrote about the negative divergence in equities the other day. So I asked the aforementioned Mr. Steiman about it because he is less cautious then I thought he would be...in response to the above post, he wrote me back the following (in effect he's saying we should wait a little more):

"Normally, whenever a stock or an index breaks out or down, they will usually come back to that levl (sic) in the short term to test it to see if the move was for real. If we test a breakdown back to the trend line and then it rolls over, you know you have a true break down."

Funny thing is...this is basic tech analysis, BUT I still need to be reminded of it all the time. So let's see what happens. We never really broke down out of the trend from the above post BUT we did break down from the post I did about the converging trendlines (slightly, and then we went back into the trendline.)

Now we wait...