Technically, the market appears to be at a multi week low based upon divergences, short term oversold indicators, and by chart patterns.

In the last two days the Dow Jones Industrial average has fallen to new bear markets lows, however it is not being confirmed by a number of other indexes.

1) The Nasdaq Composite, The NYSE Composite Index, the Standard & Poor's 500, The Nasdaq 100, the Russell 2000, and the Wilshire 5000 have not hit new bear market lows.

2) The advance decline has not hit new lows.

3) Only six of 33 industry groups have hit new bear market lows since November, in November the number of industry groups hitting new lows was in the upper  twenties.

4) The number of common stocks hitting new 52 week lows was only 348 Friday vs over 1000 last Oct and Nov.

5) The santo4 shows positive divergences on the daily, the 60, and the 20 minute charts.

These kinds of divergences usually precede good lows.

All the indexes have nice descending wedges (ending diagonals) on the 20 minute charts.  This is one of my favorite type of patterns for reversals.  Friday showed a throw over to the downside which quickly reversed followed by a breakout to the upside in the Qs and the financials.  What we need now is a breakout to the upside in the futures, dia, and spy.  Remember when a descending wedge breaks back through the upper trendline it usually moves very fast back to the base of the formation.

On a bigger scale it looks like we might have completed the B wave of wave 4 down in the bear market.  If this is the case we either have a very strong C wave up or we complete a C wave of a larger 4th wave triangle.  One could make the case the wave 5 of the bear has started but there is a problem with this, even a long wave 5 would be over within nine months bringing the end of the bear market way too far in front of the 4 year cycle.  A 4th wave extending into late spring times better with the 4 year cycle.

DIA - Daily 4th wave triangle

DIA - Daily 4th wave abc

I feel we are going to do the triangle scenario but cannot rule a stronger C wave in an abc.

What about the short term indicators

1) The McClellan Oscillator if now oversold at -300

2) The overbought/oversold index is at levels where short term rallies occur.

3) The Short term volume oscillator is at levels where short term rallies occur.

4) We had a phi mate turn date last week.

5) We has a Fibonacci turn cluster last week through Monday.

6) We also had a Bradley turn point last week.

7) The composite PHI.ST1 index is at levels where rallies have occurred in the bear market

DIA vs PHI.ST1 index - Daily

Even though technical things look like a low always be careful because this is a vicious bear market unlike anything we have seen since the 1930s and I as have always said money trumps technicals.  If there is another wave of credit defaults it can cause money to drop and supply to increase so caveat emptor.