Dow Jones Index Triggers A High Pole Warning

Today the Dow Jones Index has a unique alert within a Point and Figure (PnF) chart called the High Pole Warning. High Pole Warning means:

Clouds gather in markets, but no storm predicted just yet

There is significant worry that the recent decline in copper and China's economic woes might be the start of a wider correction. There are certainly some concerns reflected in the market internals: fewer new highs overall, and no Dow Jones Industrial Average components having hit new highs.

Still, it's hard to see imminent signs of a significant market drop. The advance/decline line is still near a new high, and that usually turns down well in advance of a significant market correction.

I would also note that financials have been market leaders recently, with the mainFinancial ETF at a new high on Monday. They usually turn down early as well.

Some say that if you can't take the whole market down, try and slow down the 'Big Momentum' names. Much was made overnight that certain sectors are too "frothy"; bears were gloating overnight over the big declines yesterday in fuel cell stocks likePLUG and FuelCell.

The lines of attack from bears are fairly easy to see: the obvious "Big Mo" targets include medical/biotech. Indeed, there are some big gains in that sector this year. Here are just a few (percentage change):

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