With the Euro breaking down early this morning before markets opened and currently trading under 1.20 you knew today was going to be another ugly day with Dow opening 200 points to the downside. The Dow is flirting with the psychological 10,000 level and could easily make new lows next week. Right now it is caught between major resistance of the 200MA and support around the 10,000 level, this is no man's land. If we close at a new low today, this could be a signal that further downside is imminent. Although it closed below 10,000 once last week before promptly reversed to test the 200MA. Because the test of the 200MA failed and is now flirting with 10,000 again. Chances of downside failure is much more increased with a bounce becoming much less likely, especially if it closes below the closing low of last week.
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