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Chartology - More Downside Ahead

Monday was another disappointing day for the bulls, with stocks popping at the open, but then paring most of their gains by the close.

So where does the market go from here?

According to John Roque, chief technical strategist at WJB Capital, it goes a lot lower.

He points to a number of negative patterns and trends:

- Last week’s rally hit resistance at 1200 when the extreme oversold indicators that emerged should have resulted in a bigger move to the upside.

- The 50-day is sloping down and below the 200-day, which is starting to curl lower, a bearish chart pattern known as the death cross.

- Industrials are down 25% off their highs.

The bottom line is that Roque sees a slew of reasons for markets to decline. Get all the details. Watch the video now!





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Trader disclosure: On Aug 22, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymours own (BAC); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Finerman and Finerman’s firm own (AAPL); Finerman owns (BAC) and Finerman’s firm own (BAC) leaps; Finerman’s firm owns (HPQ) puts and Finerman owns (HPQ); Finerman owns (JPM) and Finerman’s firm owns (JPM) stock and (JPM) leaps; Finerman's Firm Is Short (IWR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (XRT); Finerman's Firm Is Short (SPY); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Terranova owns (XOM); Terranova owns (IBM); Terranova owns (VRTS); Terranova owns (AAPL); Nations is long (SPY); Nations is long (TLT)

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