Per David Elliott :

Friday’s market reversed most of the gains from Thursday.
This candlestick pattern with two large red candles with a green day in the middle usually resolves to the down side at market tops.
I call it the ice cream sandwich candle pattern for down moves.
Again it is important for any market sell-off to see the US$ hold the overnight lows.

Our next DJ-30 downside target is 9845, then our longer term target of 9660.
THE SP-500 has a downside target is 1069, then our longer term target of 1046.
The QQQQ has a downside target of 42.44, with a longer term target of 41.45.

BKX is at the daily 50 SMA, a break here will certainly bring the indexes down.
GS is closing in on our target from last week, $176.10.
BAC has failed the 50 SMA and has a $15 target now.
WFC has a target of $28.28 now.
The list of banks in trouble is getting longer. At the end of June, the FDIC had flagged 416 as being at risk of failure, up from 305 at the end of March and 252 at the beginning of the year.

Both CCL and RCL are heading down to their own 50 SMA. H1N1 will most likely get them breaking the 50 SMA.

TXN has failed the 50 SMA, again, look for lower lows.
T has failed the 50 SMA, again, look for lower lows.
GE has failed the 50 SMA, again, look for lower lows.
HD, and LOW, from last weeks sell call, have failed the 50 SMA, again, look for lower lows.
CHINA has failed the 50 SMA, again, look for lower lows.
AA has failed the MOBO BANDS, again, look for lower lows to the 50 SMA.
BA has failed the 50 SMA, again, look for lower lows.
MVIS continues down after a MOBO break , called sell last week, closing on the daily 50 SMA.

 
LINK TO LATES GOVERNMENT INFO ON H1N1:
http://www.cdc.gov/H1N1FLU/

LATEST H1N1 NEWS

Obama Declares H1N1 Flu ‘National Emergency’
The White House says the declaration allows medical treatment facilities to better handle a surge in flu patients by waiving federal requirements on a case-by-case basis.
President Obama signed a proclamation declaring the H1N1 influenza a national emergency, giving doctors and medical facilities greater leeway in responding to the flu pandemic.
Obama signed the declaration late Friday, which the White House said allows medical treatment facilities to better handle a surge in flu patients by waiving federal requirements on a case-by-case basis.
@
Four shots:
New this week, some health officials say children under the age of 9 who have never had a flu shot will need four shots. This includes two seasonal flu shots and two H1N1 shots.

The U.S. government also warns that due to increased H1N1 screening procedures in China, anyone who is suspected of having H1N1 or has traveled by air with someone suspected of having H1N1 may be quarantined by the Chinese government for an indeterminable amount of time.

OUR MARKET TRIGGER FOR A REVERSAL LIST

What will trigger a good market drop?
There are likely 3 or 4 high probability events.

One, a Fed decision to start raising rates.

Two, a large reversal in the US$, likely caused by a rate increase in the USA.

Three, an international event such as an attack on Iran by Israel. That would like sky rocket Oil prices, Precious Metals, and anything imported into the USA.

Four, a H1N1 explosion of infected school children. And company workers getting sick that cause businesses to shut down.

Five, the final realization that unemployment goes over 10% ,and the foreclosure rate explodes enough to cause the banks to drop sharply, and pull the markets down with them.

I am sure there are several other events, but these are my top 5 picks.
I will again join you on the TOS and TCNET chat Monday