Wakeup Call: Stock Indices Closing Below Trendline Supports

Could this be the beginning of another leg lower, triggered by the rapid rise in the US unemployment rate on Friday?

Calendar

What's going on?

The USD was strengthening over the weekend despite the larger than expected unemployment rate (7.2%) released on Friday.

IMF president, Strauss-Kahn is stating that they will have to hike their estimate of total, credit-related writedowns (current estimate is $1.4T) significantly. We believe that total writedowns will end up around $2.0-2.5T. Strauss-Kahn then asked for another $150B to fight the crisis.

Stocks on the retreat over the weekend, after S&P500 closed below trendline (895.75) support on Friday. The futures are indicating more weakness and this could be the beginning of another leg down.

FX

Equities

Futures

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