So far this pull back from 1670 is unexpected but quite healthy. We did get a significant signal yesterday, a nice 9:1 down volume day. (A day when 90% of the volume on the market was negative). I have been waiting for that, in fact the lack of that signal was what convinced us that the low for this correction was not in yet last week. I want a 2nd 9:1 day like in June to complete the selling.
VIX also needs a rest. I am guessing a rebound is due with target at 1650 area.
[Add chart when I get chance]
We have one more chance to reallocate and clear some unwanted positions. I will wait patiently for the next signal.
Here is another reading on the similar indicator.
http://www.thereformedbroker.com/2013/08/28/chart-o-the-day-significance-of-90-down-days/
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