Selloff to continue?

Been busy the past few days and haven't had the time to keep this blog up to date. But I hope any followers are checking the links I have to the left for some insight into current and future market directions.

And I'm off again this weekend on a new apartment hunt, so the best I can do at the moment is offer some links of interest.

First off, Christian at PSA is informing us of his belief that we currently have 6 confirmation sell signals on the market. I think he makes a compelling case, especially with regard to the divergence between the stochastics/RSI and current market price levels. Something's gotta give and it appears that it's to the downside.

Secondly, Chart Pattern Trader suggests we've seen the end of the summer rally and goes on to discuss Grand Supercycle Trends with Elliot Waves. I don't use EW analysis since it's not conducive to trading, but does provide a good "20/20" hindsight analysis of longer term future trends, once the pattern is clearly established.

And sometimes I receive these free pattern analysis videos from Ino.com. I'll post this one as I thought it was rather intersting as "thought fodder" on market direction:

How A Japanese Chart Formation Could DOOM the DOW

And Richard Russell, Dow Theory GURU since the 1950's is telling his subscribers that the stock market is falling apart:

The stock market is crumbling

Clearly corporations are hunkering down in anticipation of another financial crisis. It's one reason that has been cited for why they are raising so much cash based upon the belief that banks may not be liquid enough to finance their operations.

But are corporations as liquid and cash flush as many assert? Zerohedge had an interesting column citing an Economist article that is discussing current accounting rule changes related to how corporations use lease arrangements to make their balance sheet appear stronger than it actually is. If this accounting change goes into effect in December, it could have the same catastrophic (but necessary) impact on stock valuations as "Mark to Market" accounting did with the banking and mortgage sectors back in 2007 (just before the big crash).

Also, there's been a lot of talk about the "Hindenburg Omen" which, as the theory suggest, sets up a series of conditions that predict an impending market crash (as if the several we've already isn't enough). Zerohedge points out that we now have the 2nd confirmation. Here's a link to the first confirmation.

If I get the chance, I'll update this post with more information as I sift through it. So check back..

Scrutinizer