Market Rolls Over into Intermediate Downtrend

Market technicals spoke loud and clear Monday. Indeed, yesterday the market folded on itself, entering yet another intermediate downtrend. br>
Major indices moved up on light volume last week merely to tag their broken 50-day averages. With yesterday's roll over, a test of August lows is close to a certainty. br>
At this time we will avoid making further predictions about where this market is heading. However, if August lows are penetrated, the broad market will then necessarily be considered to be in a primary downtrend. Whether this will occur or not is hard to say. But right now there is a disconnect in the market as high levels of uncertainty have emerged due to the credit crunch and concern that the Fed is more interested in fighting inflation than keeping the economy out of a recession. br>
When institutional money is uncertain, they sell.