Yesterday's Markets

OK -- we're back. I hope everyone had a decent night sleep (if that was possible given the circumstances).

Let's look at the charts.

Click on them to get a bigger picture:



Notice the following:

-- The markets opened lower. This was not because of the bail-out package but because there were several other bank problems in Europe. However, the markets moved sideways until the vote. Then the markets essentially went cliff diving.

-- Notice how the markets dove 4 points on the news that the measure failed. That should tell you a great deal about what the markets want right now.



On the three month chart, notice the following:

-- First, ignore the double printing of yesterday's bar. I have no idea why that happens.

-- The shorter SMAs are below the longer SMAs

-- All the SMAs are headed lower

-- Prices are below all the SMAs in a big way.

This is a bearish chart -- big time.



On the 7-year chart, notice we've moved through the 50% retracement level and are moving to the 61.8% level. Simply using Fib ratios we're looking at roughly the 110 area as out next level of support.



On the multi-year QQQQ chart, notice the index has broken through all important multi-year areas of support. However -- this weeks bar is only from 1-day. That bar could change by Friday, which could somehow keep this latest weekly bar above the long-term support line. However, this chart indicates that NASDAQ is about to break down as well.



On the IWMS, notice we've approached 65 several times this year but have been rebuffed. Now we're approaching that level again and we have a damn good reason to break through it. We haven't -- yet. But we could.

Bottom line: all three averages are looking to break multi-year support.