The Bull's horn shrunk with the Bear pouncing on last Monday to Tuesday and led to what we have been anticipating as a breakdown of the bearish rising-wedge pattern in the DJIA.

Support level 11,450 was broken last Tuesday.  Mid-week transactions failed to quickly recover.  Friday's 197-point climb to go above 11,450 was nothing but a small knee-jerk reaction to a fundamental LEH buy out.  Volume transactions were low.  We remain skeptical on this 1-day rally and perceive the market to go to sideways to down trend movement in the short-term.

The target of the current break down is at 10,800.  This is as well the most significant support of the market. 

Outlook of DJIA:

Short-Term : Sideways to Down

Mid-Term : Sideways

Long-Term : Down

Initial Support : 11,240

Second Support : 11,086

Major Support : 10,732

NASDAQ takes pride in its climb by responsively climbing back into its short-term up trend.  However, due to market participation, we may expect buying to taper off in a week or two. 

Notably, the long-term down trend line puts a strong resistance to the Bulls.  This is the major trend that dictates where NASDAQ is going for the long haul.

Outlook of NASDAQ:

Short-Term : Up to Sideways (more sideways)

Mid-Term : Sideways

Long-Term : Down

Initial Support : 2,360

Second Support : 2,258

Major Support : 2,167

Last, and certainly the least performing is S&P 500 which also broke down from the bearish rising-wedge and failed to climb back.  Target is set at about 1,230 level.

Outlook of S&P 500:

Short-Term : Sideways to Down

Mid-Term : Sideways

Long-Term : Down

Initial Support : 1,261

Second Support : 1,234

Major Support : 1,200