Dow Industrials -1.15%. Dow Transports -0.67%.

Europe. London -1.38%, France -2.51%. Germany -3.19%.

Looking at the chart of the S&P500 in America, we now have two long-legged dojis in a row. Last night's much bigger than the previous one.

We may have seen capitulation and then recovery last night. Volume was the highest since this drop started back on 22/23 February.

Major support and resistance levels are clear on the chart 1280/1330.

Yesterday morning I "guessed" that the market could be "flat" - after saying I didn't have a clue. Well, for the first hour that guess looked prescient - then all hell broke loose. The market now seems to be governed by events at the nuclear reactor site in North-East Japan. Eventually the fear being created by those events will subside and some sense of normalcy will return to the market.

Today? Probably a knee jerk reaction down - then a slow climb back up. But check the intra-day chart I posted yesterday. Until we see a clear reversal into positive territory of the indicators, this market, for the likes of me, is something to stay away from.

Good luck

Red