http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p22775897357&a=266398464

The trendline from October was broken today.  It never does to ignore a broken trendline.  If confirmed and there is follow through serious consequences may be in store.  And the mar09 trendline is within easy reach there.  Readers must now consider what they will do if this trendline is broken.  We are presently reconsidering our stops and will examine posibilities shortly.

We increased our positions in short euros and short oil.  Lamentably we didn’t have enough of these to totally offset the nasty effects on SPX positions.  We are substantially hedged in the SPX, having lightened up in the issue.

Wednesday will be a test day.  A market that doesn’t bounce after 5 days down is a market in trouble.