Market Update - 9/25/2009

Dow Jones Industrial Average: -42.25 or 0.44% at 9665.19

S&P 500 Index: -6.40 or 0.61% at 1044.38

NASDAQ Composite Index: -16.69 or 0.79% at 2090.92

NYSE Internals: 1362 Advance. 1633 Decline.

We hit 1041 today, and held it as support. As I said yesterday, we need to break the 1044 area to continue to get some more downside momentum, but we seemed to have held that area for now.

We have also completed 5 waves down now, so minuette wave (1) is probably over. A bounce back to 1060 seems likely for wave (2). That is the 50% fib retracement of the decline so far, and is also a key point we broke down from, so we may test it as resistance now.

The candle stick pattern on the Dow, S&P and Nasdaq is pretty bearish now. In the past couple of days, we have had a bearish engulfing, bearish dark cloud cover, and now the ultimate bearish pattern... The Three Black Crows. This pattern usually appears at the top of a very long uptrend, and it signals a pretty hard sell off coming. It is the first one we have had since this rally began in March. At the March lows, we had the opposite pattern, The Three White Soldiers.

Dollar, Crude and Gold were all flat today. Tech and Financials are still weak. VIX was up earlier, but faded later in the day.