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Whatever vestiges of support which lingered from the early October capitulation were undone by yesterday's selling. The Russell 2000 was the first to crack when it undercut it's first October low in late October, but other indices were well off comparable lows back then. Now only the Dow has early October lows to lean on, but it's unlikely to hold them.

It's back to watching the breadth indicators and waiting for a bottom in them before turning eyes back to the indices. The Summation Indices give the best indication of a bottom and these are clearly heading downwards:

Lets see what Thursday has in store for us: Futures off so look for a gap down at the open.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website

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