The DJIA went through a large consolidation starting April of last year. On January 4, 2008, it broke through the neckline support (LINE 1) of the head and shoulders formation. If we follow this pattern formation, the index should bring us to roughly 11,100 (TARGET POINT).

The good news is that we already hit 11,000 last week. Hopefully, selling should taper off as of the moment and a rally should happen very soon. However, the bad news is that the index broke through all the support levels we have set last week - 11,250-11,280. This signifies prevailing weakness of the DJIA and it is seeking new support levels. Based on the following chart, new support levels are at LINE 2, a psychological support level at 11,000 and LINE 3, at 10,650.

NASDAQ continues to perform with strength as it keeps itself above support level 2,202. Support levels are still set at 2202 (LINE 1) and 2,155 (LINE 2).

S&P 500 broke support only by an intraday price action. This doesn't tell us that we're safe. S&P 500 and DJIA seem to have the same amount of weakness. If the bulls doesn't show up anytime soon - within the week - then we will see breaking of support levels 1,256 (LINE 1) and 1,220 (LINE 2).