Looking at the action yesterday my first thought was "could this be it?" YES it could. But we have seen so many false breakdowns in this [B]-wave rally I don't even care to count them anymore. Therefore let's play it a littel save this time.
First we saw a small break up from the rectangle, that has defined all the action since mid-November, but it quickly failed showing weakness. A break below 10,404.62 would be next small support to break adding to the weakening picture. A break below the rectangle bottom at 10,231.93 would do some real damage, while a break below 10,093.33 would make this decline the biggest since early July telling us that this uptrend is finished.
The agrresive trader will try to short the DJI on a small rebound or a break below 10,404.62 with a stop just above 10,580.18, for a decline to at least 10,231.93.
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