Round & Round & Round She Goes, Where She Lands........

8:16 PM EST

Nobody knows.  But, we can make a good guess or two!  In case you have not learned it, learn it now.  Never try to catch a falling knife!!  I made mention of this when the market broke to the downside and I hope everyone paid attention.  And now, we have broken the long term support illustrated by the 50 SMA on the weekly chart.  (That's the 50 WEEK SMA!)

Next stop DOW 12,000.  And I don't think we can hold there.  So be ready for a drop to DOW 11,750 or even lower.  Supports are as follows:

12,000 Psych level
11,750 the approx 100 week SMA
10,800-10,700 the approx 200 week SMA and also the approx retrace of 2011 bottom.

The VIX is over 25 and over all it's major daily moving averages.  It is suggesting that this fear now embracing the market is here to stay for a while, perhaps thru the summer ..... perhaps longer.

It's a time to cull the losers from the pack and prepare to get some great buys.  Good, solid companies are being taken down once again.  The opportunity will arise to buy them when the turn around is confirmed.  So start looking at the solid companies that you want to own long term.  Put them on your watch list and wait.  Wait like a big game hunter.  Hide in the bushes.  And when the time is right, pounce!  But for now, just do the prep work.  It will be some time before the turn around occurs.


CURRENT MARKET TRENDS
Short Term (Daily Chart) – Down
Medium Term (3 day chart) – Down
Long Term (Weekly Chart) – Down

The charts.