Equity Indices

The certainly wasn't impressed by the Feds lack of action yesterday.

As seen above in the Mid-Cap index, the market is poised to break out of it's bear flag.  The 50 day ema provided significant resistance to the upside and now all that's holding the market together is the bottom side of the flag.  The indicators are rolling over and heading south suggesting the flag will break down and out.  There is possible support at the year's low, 77.  The flag itself measures down to 73.  Unfortunately, if this turns out to be a measured move, the possible low is much further below.

The longer term outlook as seen in the Naz shows the market getting rejected at the neckline.  A follow thru to the downside measures to about 2100.  That's about 15% lower from here.