US Markets - Jan. 20, 2010

Just returned from the hospital last night. I have avoided surgery for now, and will undergo steroid injections Monday...but without improvement from the steroids injections, I will need to undergo surgery soon thereafter. But for now, a bottle of morphine and oxycodone will aid in my pain management. That being said, the markets have performed accordingly. The DJIA with its sharp break below the trend line on Friday...followed by a complete reversal rallying back to just underneath the same trend line yesterday is clearly showing early signs of the long awaited decline. Again looking to weekly closing prices to help eliminate the daily noise of the markets...allowing the DJIA room to run to 10850, but not essential, as all the requirements for the downtrend to begin are now in place. As stated previously...the dollar is the key to market direction...and looks to have finally completed its retracement. Near term target remains - 90. EUR/USD has completed its retracement with a break below 1.4250, now trading at 1.4140, near term target remains 1.40. Once again these are just the initial developing stages of the aforementioned trends. Once the downside is confirmed on weekly closings on the indices as well as currency and commodity markets action could be taken to benefit... as these trends will prove to be very lucrative indeed. All scenarios remain intact. -Dio.