ADX has been decling since late October, MACD has returned to the zero line, and has releived the oversold pressure. A MACD cross to the down side and a rising ADX may signal the next leg down. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2232577 width=800>
It definetly looks like the next leg down is happening. We failed at the 50 day moving average.Of course we have to watch 8,100 on the Dow, but after failing to rally at the 50 day twice it looks like we could easily break through and revisit the lows.
most of my indicators say the samething. oversold condition has been relieved. If there was going to be the return of even a mini bull market the oversold condition two months ago would have resulted in a much bigger bounce