Market analysis 4/21/09

7:45 A.M. More weakness overnight. We rose to the pivot over night and fell back to new lows. Yesterday we broke out of the bearish rising wedge we had been forming for a couple weeks. Currently we are trading below the 20 MA and we may go as far down as the 50 MA on this correction. A 50% retrace of the whole move would take us down to 767, so keep that in mind in the coming days. Also look for the bottom of the channel we are in to provide some minor support, should we break through, this would signal further bearish sentiment. I will be looking for a bounce to short, and also be watching gold, it may have put in a double bottom but I don't believe it will hold .



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