Testing the Lows

It seems apparent to me that the broad market is in the process of testing the October 2008 lows.  If there is not broad support in that area it could be devastating, at least from a technical point of view.  While some earnings reports clearly offer reason for concern, others are holding up.  The only event that will clearly change market direction is some news that the housing sector is perking up.  The steep decline in housing prices must be at least stabilized.  Until that happens I can't see any meaningful bullish trend developing. Look for the week to end on a sour note.

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