The impression of a turnaround that I posted last week was a sure sign of a top. 

Now we're back to doom and gloom.  The latest I've heard is that now the banks have been buying each others stock and therefore doubling their risk.  That doesn't seem to make a ton of sense.  There may be a degree of truth to it, but I have to think that this is a somewhat planned event.  It's hard to believe that banks are running out and buying beat down sectors, especially their own.  But I've digressed.

I wanted to take a look at a chart because while the news is all doomy and gloomy again, a chart will give us the true picture of where we are.

(click to enlarge)

As you can see now, we're clearly in the middle of this downtrend.  No real panic here and not really an extreme range.  What is noteworthy is the length and severity of this downturn.  I've outlined it with a red trend line.  This trend started in May and hasn't really showed any signs of letting up until last week.  The ladies on CNBC and CNN both claimed that they're hard pressed to find anything good about the market today.  Well I'm here to say that it isn't all bad.  The next few sessions will prove interesting for sure.