DJIM #20 2011

A pretty ugly day on Friday considering some hope emerged from Thursday’s reversal.  Just like earlier in the week off a bounce to a previous selling zone ~1365, once again we said not to put much into Thursday’s action for a follow through unless the USD/EURO cross co-operated.  End result, an incremental close below our market health barometer the 20ma on a cluster of ‘S’/ supports. (Besides 20ma, March low-April up trend-line & Feb- April high TL).  If this cluster falls, it would not surprise if the market fills the late April gap as spillage from the recent erratic commodity/ currency trade may finally hit the broader equity market as a wider correction takes hold. 

Into the trading week, unless an ominous weekend/overnight headline hits the wires causing the above break, the market should continue the lateral back and forth movement until the potential catalyst (FOMC minutes Wednesday afternoon) in question here this month.