Sunday, January 13, 2013

Sign of short term danger

Bears are lurking

The RumWave chart is showing a potentially dangerous short term indication.  There is a bearish divergence between it and the major averages (DJIA & S&P.)  See the scores below:

Of note in the scores above, the Daily Chart score and 4 hr chart score increased while the RumWave chart score decreased.  Also, the Score Total increased slightly.  Below is a graphical depiction of what I'm talking about:

I consider the RumWave to be a leading indicator.  The funny thing about leading indicators is that they tend to give you signals that are contrarian in nature.. and people often don't like to hear it.

So, my friends, I'm bracing for a snap back sometime this week.  It probably won't be a game changer, but it will catch some folks off guard I think.


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