Don't try to catch this falling knife right now. Some 2 year charts follow - the new lows parade is in full force.
The Dow Transports ($TRAN):
![](http://1.bp.blogspot.com/_wmz32xeNKtU/SZt64LmjEBI/AAAAAAAAAeI/yX3jMXzFN1w/s400/TRAN+new+chart+low+-+2+year+chart+to+2-17-09.png)
The country of Spain ($SMSI):
![](http://2.bp.blogspot.com/_wmz32xeNKtU/SZt7Coa6B8I/AAAAAAAAAeQ/k8fCxQXS0wo/s400/Spain+-+SMSI+-+2+year+chart+-+new+low+2-17-09.png)
The Swiss ($SMI):
![](http://1.bp.blogspot.com/_wmz32xeNKtU/SZuWFSXCH3I/AAAAAAAAAfI/hOH6obIDhks/s400/Switzerland+-+new+lows+-+2year+chart+to+2-19-09.png)
Philadelphia Banking Index ($BKX):
![](http://4.bp.blogspot.com/_wmz32xeNKtU/SZt-AQo9lKI/AAAAAAAAAew/-aw6ckU6VCQ/s400/Banking+index+-+new+lows+at+2-19-09+2+year+chart.png)
Philadelphia Regional Banking Index ($KRX) - smaller banks are broke, too:
![](http://4.bp.blogspot.com/_wmz32xeNKtU/SZt-c_3vOlI/AAAAAAAAAe4/r35YEtwfkjA/s400/Regional+banking+index+new+lows+-+2year+chart+to+2-19-09.png)
The Dow Jones US Financial Index ($DJUSFN) - destruction of the FIRE economy in progress:
![](http://2.bp.blogspot.com/_wmz32xeNKtU/SZt-2g8-S-I/AAAAAAAAAfA/LZK76ZvYOcc/s400/DJUSFN+new+lows+-+2+year+cheart+to+2-19-09.png)
Caterpillar (CAT) - a company that actually makes things of value:
![](http://1.bp.blogspot.com/_wmz32xeNKtU/SZt7iIq76eI/AAAAAAAAAeY/Vkjft5_BU6k/s400/CAT+new+low+2+year+chart+to+2-19-09.png)
Dow Chemical (DOW) - all I can say is holy shit:
![](http://4.bp.blogspot.com/_wmz32xeNKtU/SZt7p_AX1YI/AAAAAAAAAeg/U4bjKpCCLrk/s400/Dow+chemical+new+low+2+year+chart+to+2-19-09.png)
Proctor and Gamble (PG):
![](http://3.bp.blogspot.com/_wmz32xeNKtU/SZt9leQYfjI/AAAAAAAAAeo/6amJtY3CuT4/s400/PG+new+lows+2+year+chart+to+2-19-09.png)
It's getting ugly again and now is NOT the time to step in and be a brave bull while this bear rips out entrails and lays companies to waste. I remain short. Remember the 3 things I am looking for to start thinking about going long again, as they haven't changed and none of them has happened yet:
1) RSI down to 30 level/range on a daily chart of the $SPX
2) Put to call ratio ($CPCE) should reach or exceed 1.10 on a daily chart
3) The Volatility index ($VIX) should reach or exceed 55
By the way, these factors are just when I start to think about going long, not that I will automatically go long once these conditions are met!