Interesting Chart To Watch

Below is a chart of the ADVANCING-DECLINING ISSUES of the NYSE (which is hidden), with 2 moving averages (showing) plotted on top of it. The two moving averages are the 3 Period MA (Red) and the 20 Period MA (Black). The two blue lines are the overbought and oversold conditions for the 3 Period MA, and the two green lines are the overbought and oversold conditions for the 20 Period MA. The 3 Period MA is used for timing turning points for the short term, where as the 20 Period MA is used for the long term. Currently we have a situation in which the 20 Period MA is in the upper part of its range, creating a negative divergence from the August high, and the 3 Period MA is contracting. This happened before the flash crash as well. This indicates that we should see volatility (Red line would then expand out of this contracting pattern), and a downside bias (as the Black line is in the overbought area). Another reason for a drop???