SPX Point and Figure points to prices below 1200

AN UGLY DAY ALL AROUND, 200 day moving averages fell hard. The market is falling apart and ends on its lows. Only March lows remain for 2011.

VIX did not skyrocket, so this cannot be seen as fear induced selling or bottom. Point and figure say VIX 40  A TARGET.

First time in 3 years that RR's PMI moved below its 89 DMA. Transports led decline, horrible signal.

If the market is going to turn itself around and REAL PANIC set in, it better do it soon. THE INTENSITY picked up AFTER the President signed the debt ceiling compromise bill into law.

We are still almost 600 SX points from 2009 bottom, and 120 points from rally high. That was NOT a new all time high, the Transports in 2011 did hit an ALL TIME HIGH, in my book that was a HUGE DOW THEORY NON CONFIRMATION.

My readership just trippled, come on folks, stay with me day to day, not just when shit hits the fan.

Duratek