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I've been looking again at the chart of the Dow and noticing some interesting things.

The Dow hit a short term high on the 8th August at 13769. That's more or less the resistance that the Dow hit last night and the night before, then free falling after the Fed announcement. Last night it opened at 13750, rose a bit then fell.

The previous night it closed at 13582 after being up at 13807 - marginally above the 8 August high (13769) - but couldn't hold above it.

So twice in the last two days attempts at rising above the 8 August high were made and failed - with last night's attempt failing dismally.

There is a small bubble above this lateral resistance line in Sept/Oct. That is now looking like an anomaly. A false break (if a somewhat rather long false break). But perhaps there is another way of looking at this.

Next.

If a trend line is drawn from the bottom 15 August (the day before the big drop on 16 August - taken as an outlier - and therefore discounted) across the bottom of the lows on 9 Sept and 22 Sept, we have a skewed head and shoulders pattern. This trend line is the neck line for the skewed head and shoulders pattern.

The last three days represents a failed test of this neck line.

Also - somewhat telling - the rise of the last couple of weeks has been on falling volume.

Conclusion - further falls lie ahead.

Using a standard measure rule, the Dow looks like its going to 12,000.

Of course, I just might be seeing things.

Cheers
Red