We finally broke the trend line from the March lows today. As I said a few days ago, once this trendline is broken. I will probably feel more comfortable in calling a medium to long term top. We clearly penetrated right through it, without any trouble at all. That is a strong sign that the bulls don’t have enough left to fight back. Ended up being 9:1 down on the A/D.

Also, yesterday I said the Nasdaq count supported a new low today. That also worked. Nasdaq was the weakest of the 3 indices today, down about 2.67% The SPX bearish count is now going to be my main count. I think tomorrow we may get a small bounce early, but we will probably break today’s lows by the end of the week.

The US Dollar also seems to be starting a new uptrend, which is not good for equities and commodities.

US Dollar was up today, Crude Oil and Gold were both down. VIX was also up nearly 12.5% The fear seems to be kicking back in. Tech and financials were leading the downside today.