Sure didn’t take long for the market to brush aside the one day wonder move following Fed comments and wipe out major support levels.  The magnitude and decisiveness of the moves of the past couple of days will most certainly need some time to lose steam… and that means getting worse before it gets better.  The momentum is just simply too great.  Just how far this runaway train will run before coming to halt is anyone’s guess, but one thing is for sure.  Not a wise move to try and guess a bottom at this point.  The damage done is too fresh.  While we are approaching some minor support levels soon, stronger support doesn’t appear until the market has undergone a much larger drop.

For the Nasdaq, all eyes will be on the soon to be reached 1900 level, but taking a look at a longer term view of the chart reveals that a drop to 1750 is not out of the question at this point.

Looking at the Dow, you can see the kind of damage done last week as it plummeted below critical support around the convergence of the 200 day moving average and previous support around 10,365.  The next logical area of support would be around the "pyschological" support of 10,000, but I don’t think it can hold up there.  It would require the Dow to come to a screaching halt and reverse direction in a hurry.

It doesn’t look good for the S&P either, as it too broke through two key levels of support last week.  Like the Dow, there really aren’t any strong levels of support below – just a whole lot of resistance up above.  The major indices are really in no man’s land right now.  An area where it’s difficult to make money with consistency.  Now might be a great time to get away from the market for a week and spend some time reviewing past trades or picking up that trading book you haven’t had the time to read.