Last night on the Marketcast I reviewed long term charts of the major averages. I spent some time on the breakdown in the Dow (5 year) chart, and went through various target prices for the next leg lower. Nothing fancy, just a review of the next levels of support. However, the VIX was the one chart I found to be in a very interesting position.

Around here, we have a few individuals who use the VIX to time buy signals. As a sentiment indicator, it does a good job of telling you where the market is likely to reverse. If you are not too familiar with the VIX, check out this article I wrote on Forbes.... click here.

In order to get a decent buy signal out of the VIX, it needs to rally quite a bit from it's current price, which means more downside. This along with the soon to be $150 crude, the market should find no resistance drifting lower. In fact, I think we do so with minimal rallyage.

That's right folks, I am still bearish.

Now if you'll excuse me for a moment, I have a few important phone calls to make, and I will be back with news of whether or not I have obtained the resources to launch an "activity" here today. I am waiting on the technology to become available this afternoon.

Note: I was unbelievably pissed to discover AKS in the "Top 10 Net Gains" this morning. In case you didn't know, I jettisoned that steamy pile of a position yesterday morning, only to find it up 8% today.