Market comments for Sept. 22, 2011: The Battle lines are drawn

With Initial Jobless Claims again high at 423K as reported this morning and the Fed action to sell short term Treasuries and buying long term Treasuries, called the Twist, and European markets still unresolved on Greece's bailout, the perfect storm has gathered.

Today there is a fight to hold above the previous lows made in August for the Dow, which was 10,719. The initial drop this morning so far has dropped over 320 points to a low of 10,803 and while we are closer to that level of 10,719, the Bulls are going to try and hold her or move up for a cushion. Inevitably the markets new low will kick in. It may not be today, but we are going lower. There is no good news out there today and none expected. YOU MAY BE SORRY YOU DIDN'T SELL TODAY WHEN YOU LOOK BACK IN HINDSIGHT!

The DAX is down over 4% today as is the CAC. In a previous post yesterday, I showed the trend of both of these indexes before today's additional drop. The path is clear for where we are headed. We are all locked into a Global dance and when the music stops, will you find a chair to sit on or will you be eliminated?