Market Update

Due to the fast moving deterioration in the market, another update is in order.

 After yesterday's promising looking hammer, the market is reversing hard this morning taking out the hammer.  It's looking like a clean break out of the 6 month basing pattern.  All moving average support has been taking out.  The market is severely oversold so a bounce can't be ruled out, but the longer the market stays below the base, the feebler the bounce would be.  Tomorrow's Payroll report may be the catalyst.  We shall see.  Defense continues to look like the best offense in this market.

The longer term picture shows the trendline break looking clearer and clearer.  Barring some big bounce on tomorrow's payroll report, this will look like a pretty ugly weekly candlestick.