Inconceivably Calm: A/D line follow thru

We got our divergence on the 10dma, and what do you know the very next day the biggest sell off since the beginning of Sept. We are now barely above the trend lines for both moving averages and so Monday will be a big day to see if the market movers will take it below. I personally hope it doesn't happen. I would like to see the market retain this level thru the elections. I would just feel alot more comfortable shorting this market after this event has taken place.

So the GDP numbers came in lower than expected, which naturally puts the already over talked about Housing bubble back in to play. Alot of Analysts have been calling for a bottom but the GDP data has shut those mouths for now. Inflation data came in lower at 2.3% but is still above the feds 2.0% desire. Bond markets have rallied hard in the last two days because of the GDP and inflation data, which puts the inverted yield curve at its highest level since its inversion began. This puts a growth scare still in play. Read John mauldin's recent report to get a more detail idea of all this data. http://frontlinethoughts.com/article.asp?id=mwo102706