The Summation index weekly basis

appears to have finally established it's down side momo and is sure to take equities down with it. Combine that with the out sized spread of the S&P over the 200 day moving average and the RSI sell signal and those last few remaining bullish passengers loaded on the Bear bus it appears the market is now ready to head down for the next 6 to 8 weeks..



I like to use the weekly Summation index overlaid with the $NYSE in order to help reveal the shorter term cycles. In the below chart any time the summation index has clearly rolled over forming a peak (blue circled areas) the market then sells off and doesn't let up until it reaches the next cycle low bar. The bars are established by lining up swing lows in the summation index with the stock index. Observing the average time span between the bars helps in projecting when the selling may let off. As far as I'm concerned the SI peak has completed and we are now going down finally!

Looking at the recent action on the 120 min. bar chart it looks to me that the top is in at 1038ish with the first leg being corrected to the .618 fib zone which resets the RSI for the next down leg...