Satwaves'  Instablog

Don't let Friday's short covering, "sucker rally" fool you, market indicators continue to weaken. I'd be willing to bet that if you pulled up a chart of any of the stocks you follow, that most if not all would be lower as of Friday's close than Monday's open.

One week ago, I reported that a "slow-bleed" market sell-off was under way. As bad as last weeks report was, it pales in comparison to this weeks. A week ago, there were 25 individual sectors out of 40 that were still in a column of X's on Dorsey Wright's Point & Figure charts. That number dipped to just 11 this week. Weakness can be seen in nearly every sector, as money continues to flow out of equities.

Out of the 11 that remain in a column of X's, 8 are lower than a week ago, with 2 sectors remaining unchanged. There was only one sector that remained in a column of X's and ticked higher, over the past week. Protection and Safety actually ticked higher. Stocks within this sector include companies that provide safety and protection in "armageddon-like" scenarios such as ICXT, which makes sensors and provides technology services to the Department of Homeland Security.

From my perspective, it is apparent that the "slow-bleed" sell off is accelerating. Here are the individual sector results: a column of X's.

WALL STREET: Wall Street stocks continued their decline and column of O's, falling from 35% a week ago to 25.64% this week.

STEEL: Steel stocks took another beating and added to its column of O's, dropping from 44.74% to 26.32% over the last five trading days.

BUILDING: Building stocks reversed to negative and a column of O's, falling from 34.17% a week ago to 28.33% this week.

LEISURE: Reversed to negative and a column of O's, falling from 38.61% a week ago to 33% this week.

TRANSPORTS (non-air): Reversed to negative and a column of O's, dropping from 42.86% a week ago to 32.20% this week.

BANKS: Reversed to neagtive and a column of O's, falling from 39.32% to 33.66% (forming a double bottom on the chart)

DRUGS: Sector remains in a colum of O's, falling from last weeks 36.77% to 32.90% this week.

ELECTRONICS: Reversed to negative and a column of O's, falling from 36.30% last week to 32.96% this week.

METALS (non-ferrous): Reversed to negative and a column of O's, falling from 42.17% last week to 34.57% this week.

SAVINGS & LOANS: Remains in a long column of O's, falling from 34.38% a week ago to 32.81% this week.

BIOMEDS: Remains in a column of X's after a recent positive reversal, yet fell from 35.14% to 33.15% this week.

BUSINESS PRODUCTS: Continued decline and column of O's, falling from 39.44% a week ago to 34.43% this week.

HEALTHCARE: Remains in a column of O's, falling from 36.14% to 34.89% this past week.

TEXTILES/APPAREL: Reversed to negative and a column of O's, falling from 40% last week to 35% thuis week.

PROTECTION/SAFETY: Remains in a column of X's following a reversal to positive in July. Ticked up slightly from 33.33% last week to 34.38% this week.

RETAIL: Remains in a column of X's following a reversal to positive in July. Fell slightly from 33.88% a wee ago to 33.52% this week.

SEMICONDUCTORS: Continued its decline and column of O's, falling from 39.87% last week to 36.05% this week.

FOREST/PAPER: Ticked down another notch adding to its O  column, falling from 45.65% last week to 38.30% this week.

MACHINERY/TOOLS: One of the biggest drops of the past week, the group fell from last weeks 50% reading to just 38.19% this week.

INTERNET: Ticked down another notch from 43.09% a week ago to 40.98% this week.

INSURANCE: Continued to decline and add to its column of O's, falling from 50.67% last week to 42.18% this week.

AEROSPACE: After reversing negative a week ago, the groups decline accelerated as it fell from 51.55% a week ago to 43.30% this week.

HOUSEHOLD GOODS: Reversed to negative and a column of O's as it dropped from 51.25% last week to 45.57% this week.

OIL SERVICES: Went negative and confirmed this week as the group fell from 49.29% to 44.60% this week.

PRECIOUS METALS: Remains in a column of O's, relatively unchanged from last weeks 47.87% reading to 47.83% this week.

TELEPHONE: Reversed to negative and a column of O's, falling from 46.67% last week to 42.79% this week.

RESTAURANTS: Remians in a column of X's, yet fell from 45.76% last week to 42.11% this week.

WASTE MANAGEMENT: Added another O to its latest column, forming a double bottom as it declined from 47.27% a week ago to 44.44% this week.

CHEMICAL: Reversed to a column of O's, turning negative as the sector fell from 58.40% a week ago too 49.19% this week.

MEDIA: Remains in a column of X's and positive, relatively unchanged from last weeks 45.52% reading to to 44.70% this week.

OIL: Group turned negative into the O column, falling from 52.59% a week ago to 46.29% this week.

SOFTWARE: Remains in a column of O's, falling slightly from 51.96% last week to 50.74% this week.

COMPUTERS: Remains in a column of X's follwing a recent reversal to positive, falling however from 47.02% to 45.87% over the past week.

REAL ESTATE: Remains in a column of X's, despite falling from 50% to 46.03% this past week.

FINANCE: This sector also ticked up slightly and remains in an X column, yet rising to 50.45% from 50.44% last week, I can only call it unchanged this week.

AUTOS: Reversed to negative and a column of O's, falling from 60.20% last week  to 54.64% this week.

FOOD: Remains in a column of X's, falling slightly over the past week from 58.07% to 56.28%.

ELECTRIC UTILITIES: Remains in a column of X's at 61.40%, falling slightly from 62.07% a week ago

GAS UTILITIES: Remain overbought and in a long column of X's, falling slightly from 79.60% last week to 79.31%, relatively unchanged.