DJIA 10/06/08 - HITS 9600 TP

MARKET BREADTH NYSE
Net Advancing Issues -2,781
Net New Highs -1661
Net Up Volume -2,595,870,205

TRENDS
*PRIMARY DOWNTREND | Directional wave | Prior support 10827-BROKEN | Prior resistance 13136
*INTERMEDIATE DOWNTREND | Directional wave | Prior support 10827-BROKEN | Prior resistance 11867
*SHORT TERM DOWNTREND | Directional wave | Prior support 10365-BROKEN | Prior resistance 10882

CHART WATCH
In my previous post of 9/15/08 I cited that following the failure of the minor support of 11037, focus shifts to 10827 as an important support level which if broken could lead to a potential drop to 9600 (DJIA 9/15/08-BREAKS SHORT TERM SUPPORT). I considered it important because at the time, 10827 acted as support for both the primary and the intermediate trends. Two days later, on 9/17/08, the index did breach 10827 and I categorically stated that 9600 becomes a valid TP from a technical perspective (DJIA 10/17/08-BREAKS PRIMARY AND INTERMEDIATE SUPPORT). Well today, the 9600 TP is attained when Dow breaks below 10000 hitting an intraday low of 9525 before recovering to close at 9955. Trends in all the significant time frames continue to decline but this recent steep drop could be setting up for a potential near term capitulation that could lead to a bear market correction rally.