A Feeble Attempt at a Bearish Formation

Whenever a strong decline in the market, such as what we've witnessed recently, the contrarian in me attempts to find something positive to note. As you can imagine, there isn't much to place in the positive margin as far as Friday's decline is concerned, but we'll begin with what little there is.

In the very short term -- that is, within two days -- the Arms Index (TRIN) scooted up above 2 on both the Nasdaq and the NYSE for the first time since the April 10, when we saw a short-term market low. That tells us there was some decent selling on Friday. High TRIN readings often lead to short-term upside relief. The equity put-call ratio had its third day in a row of readings above 70%, something that has not happened since the final days of December....493 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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