Technical Traders Say Buy, Charts Say Plunge-O-Rama

Some technical traders I follow are looking for a squeeze here. The charts are on the verge of "bombs away." A rally won't last very long, but it could hammer short-term traders.

The major indexes are still off their lows.

This is one of those moments when many traders might get psyched out by a rally, thinking the worst news is all priced in. Nothing is priced in. If there's an equity squeeze, it could be triggered by market internals or a rebound in yen, euro and bonds. Otherwise, look at 2008. Nothing will stop the freight train of selling that will begin if this market busts lower with authority.

To crystallize all of this into one chart: look at world ex-U.S. Here's one such ETF, SPDW.