Example Chart

In the Inverse ETF post I noted certain inverse ETFs look like they are re-setting for a move down in the market. Here I'm using the DIA as an example with the 3C bar chart.

At the red arrow is the negative divergence on Friday that was expected to be the top of this up cycle, Monday we got a big gap down and then a move back up. You can see even though price is higher now then Friday, 3C continues even lower. Looking at the bar chart below (shallow areas=accumulation, deep areas=distribution) you can see the depth of the negative divergence at the first red arrow on Friday and the depth of the negative divergence today on this bounce higher, which would indicate that there has been distribution in to the move higher today as the average charts have shown, but it's almost as if this is still 1 major top with the even deeper spike down today.

I'm holding my shorts here.