Markets Break Last Tuesday's S1 Support Level

GE reported lower sales and earnings that fell below estimates and lowered it's second quarter and full year earnings guidance. The slowing economy had a negative impact on it's financial services business. This put the market on the downside from the open. All four broad indices broke below their S1 support level establish last Tuesday April 1. Unless the market has an amazing rally in the last 90 minutes, this will shift our short-term trend reading from neutral to down. AAPL's support bounce also failed to confirm today and fell below recent support. The key is to be patient and watch for the next support bounce. Brokerage stocks GS, LEH, MER and MS all moved lower today continuing their recent downtrend. We'll recap today's action after the close.