Wow!

The obvious: Not a good down for the equity markets. Another sharp fall and another downtrending day on the daily chart of the cash S&P500. This index has now lost a quarter of its total value and a full 50% of the bull run up from the 2002 low.

Unless one is apt at catching knives it is best to keep powder dry as we have now sliced through major support levels (1185-1199); priced have ignored a daily chart technical “buy” signal and yesterday’s aborted rally never came close to reaching 1255.09.

Another volatile day on tap: the futures are up 19 points as I write this (7:30 EDT) but the trend is down and there is no technical support at this point. I will stand aside and wait. Next Posting: Monday morning.