CHART UPDATE AM DATA DUE

As you can see, even after the payroll data hit bottom and began uptrending, folks that was in 2001, and when did the stock market bottom? 2003. (test of 2002 bottom) we are now approaching the worst it was in 2001. This is beyond our recent experience.

Even extending jobless benfits to almost a 1.5 years is not enough for some. And remember, a jobless rate near 10% is probably much much worse than that is using the U6 measurement which is closer to 20%.

When thinking of today and comparing the situation for the unemployed and for retailers hoping for a merry xmas and a return of the Consumer Society, there are at least 7 million newly in the ranks of jobless.

Aren't we set up for data this AM that may not be pretty? IS it baked into stocks with yesterdays tumble?

Here is what I would be looking at, we had NASTY decline yesterday of the 90% plus DOWN VOLUME variety, so let us assume with recent market decline we have reached an oversold condition, just like when the market rallies when OVERBOUGHT, will the market respond with a respite from the selling, or will it be unable to find buyers to stem the tide of selling, even if temporary.

We , as I have charted earlier, have been putting in series of lower highs and lows, I had set up a CHANNEL anf it has broken down thru the channel on the HOURLY CHART.

Can price in a rebound break back into channel and surpass that little congestion near the bottom (9550 ish). My HUNCH is it has already taken out close by support and is more likely to work its way down to next level lows of 9253 shown here.

AM data includes hours worked and you can find all important data releases at BRIEFING.COM and look for Economic Calendar.

I have improved (much of which I cannot show on my charts as proprietary) my methods and analysis on the short term trends IMHO, and I do like the hourly chart for that. When we STEP BACK to daily, weekly, and then monthly, a lot of what you are seeing here is not in detail, so for those bullish, there is no proof of THE TOP in yet....even though it could be.

D