It was a double overnight. When you have high oil prices, slowing economy, no more interest rate cut, falling dollar, and inflation concerns and you still want to invest in equities? Yesterday's close was a setup for a fall especially in light of the fact that the market had already travelled 30 OEX (600 DOW) points from the low. It was a bit of surprise to see it down this much though. Today's price action has broken the uptrend and there is more downside to come. If the employment report is good tomorrow, brace for another fall. Do not have a downside target yet but count the number of days. Count 5 and that will bring us to next Wednesday as an estimate for down days. Or draw a line to connect the two daily tops and a parallel line to connect the lows(just one formed at the moment) and you will see OEX going below 700 for sure.
2c
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