Another day, another major sell off in the markets. Listening to Louise Yamada on CNBC's "Chartology" reminded me of my similar bearish view on the markets a couple of months ago. A clear, utterly bearish "double top" pattern on the S&P 500. However, if you look at the DOW 30, no such pattern can be observed. Thus, there is a conflict between the S&P & the DOW.
Without the backing of a long term trendline & my self discovered stock bottoming pattern, I would have probably been a short seller today. I am not, however, and I expect a long term bottom to be set in the markets close to these levels. As Warren Buffet said in October: "Buy American. I Am."
Oh, and by the way, the ISM manufacturing index is showing stabilization and PCE posted its first gain in seven months. Contrary to popular view, the stock market is not nearly always a leading indicator; it often is a coincident indicator.