monday madness, page-39

Markets reflected concern over the impact of the housing down-turn on the rest of the economy, in some cases retreating below the line of accumulation of the past few months. A secondary correction is likely, but reversal of the primary trend is not - we have not yet reached stage 3 of a bull market, where prices have outrun values.

The Dow Jones Industrial Average retreated through 13700 and is now testing support at the base of the recent months consolidation. Breakout below 13250 would warn of a secondary correction. Twiggs Money Flow below zero signals distribution.