"Yesterday broke support and continued down into Tuesday's lows.
At this stage it's simply follow the 5-day pattern.
Any further weakness down and it's into the support levels (yellow).
Normally a break of support (previous day) would swing into the 5-day 50% level and continue down into support the next day.
Simply define Wednesday's trading by Tuesday's 5-day lows.
Below and it's moving down into Wednesday' support.
Above and it's trying to swing back into the 5-day 50% level"
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DOW S&P 5-day pattern
Both US markets followed the rotation back towards the 5-day 50% level on Wednesday on the news that %rates were cut, but once again followed the 5-day pattern lower.
The range volatility within the 5-day pattern over the past few days has been tremendous, and yesterday's price movement followed the pattern which often occurs during normal times of rotating back into the 50% levels and then continuing lower.
The trend within this 'weekly' timeframe is defined by the 5-day 50% level, and whilst price is trading below all higher timeframe support levels in 2008, there is nothing to guide traders on the way down other than using the 5-day pattern.
At this stage the S&P looks to be continuing down into 933 (2007 3-year lows)
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