As I pointed out in the last post, the only sector that looks particularly bearish here is gold and silver index. Looking further into it, it turns out that gold miners are at very important levels here. Following is a chart of Amex Gold Miners Index. Its been quite a drop in the past few weeks. The importance of this level is shown in the chart below. MA(200) seems to be coming to rescue of the bulls but the momentum lies firmly with the bears. Interesting times indeed!
And following is the weekly chart of the gold miners index. It turns out that gold topped out at this very level in 2008, thus further increasing the importance of this level.
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Take care and good luck!