The indices were all hit Monday and finally experienced a relatively wide range down day. Accompanying the decline was a collapse in breadth, with the NYSE breadth reading closng at – 1817. In strong bull trends this is in the area of “oversold”, and is usually preceded by immediate new highs. This sets up a very important if/then scenario in the indices that has potential intermediate term implications and will help to answer the question of is a potentially significant top forming.

More details and charts here.