The daily SPX has an inside day - thereby a consolidation after a 10% drop within 2 days is a normal thing - as far as we can call any of this normal. The daily SEQ count is still one up to 10 with a green 3, hence we are still due for a test of the 860 support area short-term - within next week. We might get another mini upleg before we will break out of this triangle pattern and make new lows. Volume is again weak to moderate and the VIX is loosing some ground but the economy is deteriorating in a higher gear now and Goldman expects a contraction of GDP for the Q4 by
-3.5 % and for Q1 2009 by - 2 %. Earnings and valuations of stocks have to be adjusted consequently.
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