DOW update – red alert
The Dow reached the target area and has turned down since but managed to break below a minor support yesterday testing the 55 MA level. The next 2 days are rather benign in astro terms and it will be interesting to se how high the minor pullback up will go as 12550/600 should do the trick, a close above in weekly terms would alter the short term picture but not the overall top building pattern. The fact that we have an expiration this Friday will support the upside. USA has maxed out the credit card ( debt ceiling) combined with an ending QE2 which has a potential Greece default on the side is quite an explosive mix. 11600 is a very conservative target to the downside within the next weeks but the turn now is rather the start of a minimum 25% decline – it will rather depend on when the FED steps in with QE3 and what magnitude. The real ugly part for the markets will be rather in 2012 but lets see as we go.