Since the "bull" phase of the market that started back in March 2009 one candidate that has excelled in all tests is the NYAD.
Starting in March 2009 all the moves in the NYAD have unfolded in a 4 wave fashion. Waves 1-3 mark the upward trending of the stock market indexes, with waves 2-4 being the corrective ones so far.
Currently, it looks like wave 3 is completed and all that remains to be seen is if wave 4 will bounce on the lower trendline; otherwise, something bigger is in the cards for this sell off.
Another ability of the NYAD, thus far, is that of predicting bottoms, tops or breakouts (bold blue vertical lines). For instance, it has captured the bottoms of July and November 2009, as well as, the bottom of July 2010. It has also captured the break out of March 2010 that led to new highs and recently it has caught the top.
The way that NYAD looks at the moment says that there is more room for the sell off to continue; and when it reaches the lower trendline, TMN believes that we either fasten our seatbelts for a wild ride to the downside or we continue as normal and start another leg upwards.