The futures could do some serious real technical damage to the daily chart with another day of hard selling. An 18-point downdraft, equivalent to about 150 Dow points, is all it would take to breach an internal and external low, generating the first bearish impulse leg we’ve seen on a chart of this degree since spring. At that point, subsequent price action at the ‘p’ midpoint support of the developing downtrend would be crucial to our assessment of the bear’s power (see inset).
