Rick, I think your observation are correct, these internal (Tic/trin) divergences are bearish, to counteract these, though, the price action (failure of a decisive break of 1370 on the Naz), and few BP charts (posted here earlier by Bullwinkle) are a slight positive together with the minute creep of the Naz new highs in the last three days despite the market going nowhere. I think, however that when all the parameters are viewed together, these three "positive" elements are outweighed (at least in the turnip's weighed model) by many negative developments, particularly noteworthy are the signs of distribution you noted, the Dow breaching recent support at 8155/65, bad volume trend bad VXN behavior (someone posted the downwedge there which could bring a big rise in that index, and thus big sudden price decline in indices), and a number of additional internal parameters, including excessive bullishness from letter writers. My guess is that next week we continue down and finally take out that 1370 area for good and possibly 1330 as well.
Zeev
