Alright, we finally have a go. Short-side, that is. We shall expect the market to fall to the target support of 11800/11900 for Dow and 1320 for the S&P. With the crude oil price poised for another round of increase, we cannot yet determine if these levels are going to hold. Furthermore, the consumer confidence of the economy is very low now. So, perhaps we may have another opportunity go take up short positions again.
As far as the short-term chart is concerned, there isn’t much to say but bearish. Now, it would be more appropriate to look at the longer time frame, weekly chart to see if there will be any interesting development. I shall take the Dow chart for mention here but you can also make the similar prediction for the S&P. Their patterns are very much correlated.
The weekly Dow suggests that a major support is at 11800. This is also the support level of the daily chart. Therefore, a break below this support is a breakthrough and could cause real damage to the US economy, and perhaps the world economy as well. To the opportunist traders like you and me, we certainly welcome this development. But to the people on the street, this can be a real disaster. From these levels onward, I will see no bottom. I will have to re-analyze the chart we come to that point.
DJIA Daily Chart

DJIA Weekly Chart

The Nasdaq is not holding up. The crucial support is breached. But this is not a confirmation until my RSI support is broken, too. If this is taken out, we can have more fun with it.
NDX Daily Chart

Apple Computer (AAPL) is hanging precariously. There is a likelihood of a breakdown. We may have a good opportunity to take some short positions on this stock for a quick profit. Do watch it on daily basis.
AAPL Daily Chart

STOCKS TO WATCH:
AAPL – bearish breakout
I like that description….”see no bottom”