Important CDNX Chart Update: Turning Point?

The CDNX ran up to 1950 in early trading this morning before plunging 34 points from there to close at 1916, a 19-point loss for the day and the 10th “down” day out of the last 11.  A “hinge” has appeared in the Slow Stochastics, as John outlines below, which could indicate a reversal is near.  The rising 300-day moving average (SMA) provides strong support at 1889, though this correction may not end until there’s a drop slightly below the 300-day – just like what occurred at the market bottom in July of last year.