On the surface it's extremely bearish, but with the current volatility it may not actually mean much on where we go tomorrow since both the bulls and the bears continue to "over-do-it" on the moves up and down.
On the bearish side, it did close below this weeks previous low of 11,387, but that came in the last hour of today's trading and it ALMOST found support there a little earlier. IF it can hold this area a bounce is likely, but if it falls apart tomorrow you can see on the hourly chart that there's not much price support again until 11,100 unless it can catch itself on the 100MA at 11,300.
On the bullish side, this was just a 38.3% retracement of a 6 day relief rally and could be healthy in the context of a sustainable rally to the upside. It has to hold here in this area though.
DOW 60 Minute Chart:
DOW Daily Chart:
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The Dow will not hold.
The yen carry trade unwound today as the chart of the EUR/JPY, FXE:FXY, fell lower to 1.690.
The neoliberal Milton Friedman floating currency regime and its policies has met its Waterloo suffering defeat at the hands of gold investors as is seen in the currency harvest, DBV, falling 1% and gold, GLD, rising 0.8%.
Not only was there an extinguishment of stock wealth today, there was an extinguishment of currency wealth: interest rate differential traders suffered a set back
The Great Unwinding Of Investments commenced today -- Great Depression 2 is on the way.
I expect a severe decline in the value of the US Dollar and stocks.
In the referenced article .... http://tinyurl.com/6oc3fe .... I recommend that one invest in gold.
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