Market Update

It sure didn't take long to get some feedback on which way the new trend may be going.

 The Dow cracked its long term trendline.  There might be a little support at the moving average, but the indicators are looking very bearish.

Zooming in a little bit the trendline break can be seen a little easier.  The daily indicators are getting very oversold.  I would have to suspect there is going to be a little rally soon which could be used to lighten any equities positions people might be holding.

 Similar situation on the S&P 500, although the trendline break looks a little more convincing. 

Taking a closer look, there looks like a head & shoulder pattern in play.  Typically, a break of the neckline (shown in green) needs to occur before the pattern can be validated.  Volume has been heavy on the recent down move adding credence to the H&S pattern.  If the pattern works, there should be a backtest of the neckline followed by a bigger downside move.  If you are long, that is where positions should be dumped and shorts put on.  Watching closely for further developments.