So much for the Dow holding support yesterday above the 11,000 level. The Dow futures are currently trading a morose 127 points below yesterday's close. The futures overnight have handily blasted through the support level that had held firmly over the past few weeks. It will be interesting to see if prices continue to remain below that level during the day session, especially since now that the 11,000 level has broken, it becomes resistance instead of support.
The daily chart (below), after showing some signs over the past two weeks of consolidating, have now reinforced the downtrend today. Look at the Klinger Volume indicator in the second panel, which, after several days of suggesting an upturn, has now turned lower again. Volume suggests that stock index futures are going to continue to slide lower still.
