If you ever desire a better picture of what is really going on in the markets, just zoom out in time a little. This means that if you spend almost all of your time looking at daily charts and intra-day charts, step back and look at some weekly charts.

Take this week, for instance. It certainly has been a painful one for longs, particularly those who have been adhering to buy-on-the-pullback strategies. At some time, however, the bulls need to ask themselves when a pullback may be turning into a full blow bear market. We aren’t there yet – in fact it's not even close – and a glimpse at the weekly chart makes this week’s action look like little more than a pimple on a bull’s butt. More importantly, it’s just one week and a lone week of action is rarely decisive enough to mark a turning point with any degree of confidence – even if it generates three Hindenburg Omen signals.

Things will get interesting if and when some of the recent market leaders start to roll over in their short-term moving averages. With the exception of perhaps Mastercard (MA), I haven’t seen this happen yet, but I have my eyes on a few of the China stocks just in case, most notably: China Mobile (CHL); China Southern Airlines (ZNH); China Life Insurance (LFC); and, of course, Baidu (BIDU).