Postcards from the ledge: Charts show many markets at critical levels now

For a brief charts roundup of how the markets are looking after today's action, let's start by noticing that yesterday, the Dow Jones Industrial Average poked underneath the lows of last week. That seems a bit bearish, especially in light of Tony Caldaro's recent comments about this index. The banking and transports charts are also noticeably weaker - too bad after Goldman Sachs' recent "conviction buy" on many banks! As the dollar met our projected low today, bonds also continued down as we'd expected - but check out the bullish divergence in TLT's chart. Finally for sentiment, VIX continued up and the bullish percent for SPX (actually a technical indicator looking at how many stocks in the index are in a bullish chart position) continued down.

The suggestions from these charts should provide many, including us, with much to review and discuss over this long holiday weekend!