Dow Jones and S&P 500 to continue downtrend:-
Last time we saw how Dow Jones was showing weakness (On 10June2009, refer that post http://tanmaygopal.blogspot.com/2009/06/view-about-dow-jones-dow-jones-8763-is.html
It has achieved our target of 8400 but now shows more downside also. Dow Jones has formed a bearish Head & Shoulders pattern and as of now it has already broken the neckline at 8200 (this graph doesn't have the breakdown bar). The target for this formation comes near 7700-7800, so US markets look still bearish from here.
S&P 500 looks bearish:-
S&P 500 had formed a bearish wedge along with a Head & Shoulders. Wedge was broken a fortnight back but H&S also got broke down last night. The next target for S&P500 can be 710-720.
The Data flow continues to be negative in US as unemployment rate hit 26-year high http://business.timesonline.co.uk/tol/business/economics/article6623953.ece
Obama Adviser Says U.S. Should Mull Second Stimulus http://www.bloomberg.com/apps/news?pid=20601087&sid=aStWHJXsvePA