US Markets - Jan. 22, 2010

The markets are for the first time since March '09 about to break their up trends. The completion of the formation on a weekly basis was the setup, and the break of the up trend on a weekly basis will be the confirmation...setting the stage for a significant correction. Numbers to watch for the close are DJIA: 10375, S&P500 1119.50, Nasdaq 2250. Along with the weekly break,(DZZ) should close above 13.85, (UUP)above 22.25,(RSW) above 56.85. The US dollar has bounced slightly since nearing 1.40,as expected, and should resume its downtrend toward 1.3750-1.38 area. Barring any late Friday afternoon reversals...and the usual Monday Market Levitation...the markets upward retracement from March is complete and the downtrend will resume. Watch the closing numbers for a definitive answer. Weekly commentary will have complete wrap up and scenarios for the coming downtrend.-Dio.