As may be seen here in the second chart a trend break is occurring in a 28 day uptrend. In the first chart we can see that the trendline from March 6 is definitively breached.
There is a trendline from August which might offer some support:
But all in all we think the downwave has started and are hedging our index positions and rearranging positions in our personal portfolios. Remember, this is not necessarily what readers should be doing. In fact the nearest Dow Basing Point is 12/31/09, 10,423.12 which would put the stop 5% below that. Another important BP is the low of the rectangle, 11/27/09, 10,231.25. the conservative thing to do is observe this downwave and see if it takes out the stops on those Basing Points. That is what the system does. These stops are benchmarks for the other market indices also.
Being by nature in part a punter we are always fooling with the system so readers should evaluate these facts and comport themselves accordingly.
Stay tuned to this emergency broadcasting system as we will be probably be posting more comments as we continue analyzing the market today.