We have seen a lot of "chop" in the markets the past few weeks. It has been a bumpy ride, but the charts are moving sideways in a tight consolidation pattern. Our friend, Chris Vermeulen is seeing the same thing we are and is expecting a breakout and he is prepared to call it. There are a few things he watches to identify trend reversals including the accumulation or distribution of shares, extreme sentiment readings, market internals and breadth, and if the market price relative to the 20 SMA.
Currently we are seeing all the signs of a reversal to the down side, but it has yet to be confirmed. [Read analysis and download his charts.]