But is must be noted this is still a bear market and the sharpness of the rally in the last few days has the market overbought. It might be more prudent to wait to buy dips as long as the summation is rising. Regardless, until it again declines, the benefit of the doubt is to the upside.
On the Feb 10 sell signal:
The SDS trade closed out up 14.9 percent, TWM up 22.2 percent, QID up 6.6 percent (hmm...the NAZ has been stronger throughout this decline). I have updated the charts above for FAZ and TZA, the 3 times leveraged short ETFs to illustrate the Wall Street truism that pigs on a spit get barbequed on the turn...
Both FAZ and TZA, as posted above, had doubled on this run as of four days ago. TZA managed to finish the NYSI trade up 30.7 percent. But FAZ (holy sow!) dropped from a 100 percent gain to a 16 percent loss in three days.
They also illustrate that Summation index is nothing more than the McClellan summed, and when the McClellan starts putting in lows above lows or highs below highs and starts trending up or trending down before the Summation's actually turn, it's a good to pay attention. There are no better warning signs in all the market that a turn is coming.
As Forrest Gump would say: "That's all I have to say about that."
Good trading to everyone.

http://stockcharts.c...3849&r=4705.png
http://stockcharts.c...27836&r=348.png