THE MARKET IS SHOWING RESPECT TO AN IMPORTANT LEVEL OF RESISTANCE. NOW WHAT?
Today's move down more than likely marks a beginning rather than any conceivable end. It's the beginning of the market taking its foot off the proverbial gas pedal in favor of a consolidation or a pullback not to exceed 5% from the recent highs.
You can see in the daily chart posted below that the Dow is showing a tremendous level of respect for the generational trendline/resistance point I discussed a couple nights ago. This is a sign of short-term weakness for the average. What makes it more decisive is the fact that the markets gapped down off of this resistance area. When you have momentum that develops off of such an important level it just shows that the market is paying all the more attention to it.
click chart to enlarge
Dow 30
