Even on the hourly chart, you can see how the Dow could continue to effect 1000-point swings without saying much. There have been no fewer than three such swings since early December, and they add nothing to our store of knowledge other than that volatility seems to be picking up. Does that imply something has changed? Maybe. But even if so, Wall Street has been shrugging off earth-shaking headlines for nearly six years, acting as though all news is either good news or irrelevant. From a technical standpoint, yesterday’s low could not conceivably have occurred in a more obvious place, two points from last Tuesday’s bombed-out low. This means the low is likely to be tested today, and that a probable failure will send the Indoos down to mid-December’s 17067 low in search of better traction.
