I am seeing so many threads after a day like today stating that the markets are going to come back on Monday or overall and run back up to 14K. I am also reading about how the markets will fall out of bed this week etc etc. Here is a weekly chart of the Dow showing the Head and Shoulders formation that has been forming for 8 months now. Today the Dow pierced the neckline to the downside on a closing basis. Now what does that mean? For someone like myself who trades off the charts and experience etc..I will be using the broken neckline as a signal that there may be a true change in trend here for a number of months (downside that is). I wll also watch the neckline and see if the Dow can muster the stregnth to rise back above and cause a short covering rally if this is indeed a false break. Either way I will trade my stocks and futures with the understanding that right now in my world an intermdiate bear signal has shown itself. As always I will remain flexible with my eye on the neckline and the possiblity of a false break, in order to take advanatage of opportunites to the upside should that be the case. See attached..good luck in your trading this year.