One longer-term indicator I've watched with interest is the Uptick Rule (in which stocks cannot be sold short without first having an uptick). This rule was put in place in 1938 after the sharp drop in 1937, as a means to slow down the crash-like drops that can cascade very quickly without such a barrier in place.
Isn't it interesting that the uptick rule was eliminated on July 6, 2007? Note the sell arrow on the chart of the Dow "Diamonds" ETF (DIA) which trades about 1/100th the value of the Dow Jones Industrial Average on that date. The uptick rule was eliminated as it was claimed to be a relic that modern technology no longer required.
Tag >> leh
