Here is a daily chart of the SPX with the Awesome Oscillator indicator at the bottom (click to enlarge):
Sine the July low, the market has corrected after each of the four times that the AO flipped from green to red (see the blue vertical lines on the chart). And on Wednesday, the AO flipped to red once again.
The AO is an excellent indicator, though it is not magic. Nevertheless, the market has lost a critical amount of momentum, and selling strength may work well for a few days. Maybe we will have a correction now, but remember that Thanksgiving is next week, and the market made a bottom on November 21st last year.
