Dow Jones Breaks to new multi year lows today

Just a quick update here.  It is about 3:15 est and thought I would drop a quick update on what I am seeing.

First of all, the DOW Jones broke to new multi year lows today.  Very ugly with monster price move down today, over 300 points as I write.  The question is how low do we go here on the short term.  Well, the DOW has dramatically dropped off in volume compared to the lows in Jan and March but a close below those two levels would maintain that these market can float lower.  The Dow is definitely the leader to the downside and so are the banks, which have shown NO signs of letting up.  This is getting ugly, but ugly can get uglier.  Short term, I expect a bounce but on a more intermediate term basis, look for low to mid 10000's on the DOW Jones.

The S&P 500 and the Nasdaq continue to remain stronger and hold above their respective January and March lows.  However, the S&P 500 is getting close to a support area in the form of its gap off the March lows and this should provide temporary support for a move higher.  With the Nasdaq and S&P 500 lining up to meet some support areas shortly, we expect a bounce coming up.  Targets not yet determined.  Need to study further tonight.

Finally, the Nasdaq, as you can see, is nearing a double top breakdown target at the 2310 area.  I suspect that it will push even lower to fill its gap from April at the 2280s area.