Neutral Channel Continues...

The Dow completely returned last Friday's gains as it dropped another 176 points, continuing its intermediate term neutral trend defined by the channel within 9700 to 8100 points. This of course made today's drop look nothing more than just a continuation of a simple technical pattern waiting for the next breakout to happen. With companies reporting dismal earnings all season, it truly is hard for investors, including fundamentalists, to muster any optimism. I maintain my view that the market requires one final capitulation before a recovery can be staged.

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