1,000 POINTS OF DARK:

After falling 1,000 points from its 22% runup high, the DJIA has corrected a 38.2% Fibonacci retracement, and nearly to the Pt. & Fig. maximum level.  This record decline (12 losing days in the past 14), the most since 1974, has created a much oversold condition. Judging from a strong Monday, after option expiry and the annular equinox, we should  see at least a bounce in the markets -possibly a summer rally.
The McClellan Oscillator hit a new multi-year low of -110 (surpassing -108), the AAII Bull/Bear ratio of postcard opinions of 23 to 46, with the Commitment of Traders on the S&P mimicking it. As I stated in my Examiner.com column (Examiner.com - search Brent Leonard) the Declines outdid the Advances 10:1. a climactic amount on the strongest Volume in weeks. Finally, the CBOE Equity put/call ratio reached 89 -another recent high. Here are the numbers:

Date>		5/18/2012	5/11/2012
Indices:	DJIA	12369	12820
	NAZ	2778	2933
	SPX	1295	1353
NASD/NYSE	WklyVolume (Bshs).	10.1/4.7	9.7/4.1
nasd/nyse	Specul.Ratio hi=bullish	2.15	2.37
Sentiment:	put/call-CBOE	89	88
Barron's	VIX>50-alltmlow=8.8	25.1	19.9
	Advance/Dec-NYSE..	297/2906	1238/1937
	Weekly Net:	-2609	-699
	Cumulative:	129294	131903
Weekly	NYSE hi/low	90/259	191/144
New Hi's/Low's	Nasdaq h/l	92/330	163/223
McClellan	Oscillator	-110	-50
McClellan Sum	.+750/-1000	-323	-50
Newsletter	Inv.Intel -Bull:tues	39.4	38.7
Surveys	Bear:-5yrs	22.3	20.4
	AAII  -Bull :wed.	23.6	25.4
	Bear	46	42.1
COT:Change w/w	large/small (net)k	3/(15)	3/(6)
CEOinsider	selling	13:1	30:1
BalticDryIndex	GlobalEcon	1138	1138
3-box rev	Bullish%-	52	59
US equity -ICI	Fund Flows	1 wk lag	(2.4B)
MMF flows	Change in $B	(5.4B)	1.2B
MargDebt- top (300M)	monthly
ETF:Eqty/Int'l/Bond	million$$ .
2-yr Tsy Yield: Inflation		0.31%	0.31%
Euro futures	1 yr.offset-CommHedg	5.47	5.4

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1,000 POINTS OF DARK: