It's turning out to be one of those push me pull you downturns. Friday and Monday were convincing down days. Then Tuesday called a halt and Wednesday saw the recovery of about half of the loss of the previous two days. Yesterday started fairly well but then the rot set in and the Dow ended with a 260 point loss. Today has come but not gone. So far it seems to be respecting a horizontal support line that goes back to the end of November. If the Dow breaks that support the next challenge will be in the 15700 to 15900.region. with diagonal support originating in March 2009 meeting a horizontal line which goes back to August/September last year.
We don't know what will happen but we do have markers to guide us as the US market pulls back.
The big problem is that the pattern of other markets following the US seems to have broken down so it is no longer clear if European markets will follow the US lead.
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