Dow

[Hoop]

TL....... short term market influenced by media events are soon forgotten. In reality..when a market gets toppy and bearish divergences appear the investors and media will ignore the good news and focus on any bad news (even a week late news will do) as an excuse to get out.

When the market has bullish momentum as it did last week this announcement (28th Feb) Euro little changed after S&P cut Greece to "selective Default" which I considered very bad news never got much mention as it virtually says S&P has downgraded Greece from CCC to C which is the lowest grade possible. C is the default level with two parts, a better selective default or the worse disorderly fault. Finch also downdraded Greece to this level as well. Usually this downgrade stops foreign bold holders from investing further money as it is near 100% they will never see their money again...so foreign funding to Greece become nigh impossible...strange and bizzarre that Mr Market dismissed it until today................ so todays news comes as no surprise to me charting the DOW as Mr Market is using this excuse (a catalyst) to correct an overdue toppy market.

The Dow fell 204 to close at 12759. It tested the first major support of 12750 (12753) it dipped below it intraday (giving a warning that this major support may fail in days to come) ...then closed above the support again at 12759. (see my chart in above post).

Forget the media BS......Technically, the DOW outlook has to be viewed as a negative........ todays event should be considered as a possible start to a Bull Market Correction.