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Attention Dow Model Watchers - We Are Breaking Down Support

For those of you who have looked at my Dow Model, here should be a good example of how to use it - and hopefully helpfully.

As of Tuesday 2:30 pm EST, 6 stocks had broken support - GE, CVX, XOM, IBM, DD and CAT. Another 6 were now testing theirs: INTC, HPQ, DIS, UTX, MMM, BAC and AA. Most of the others were trending down, except for, curiously, MCD and WMT actually testing their resistance levels.

I forget one telling swing in one of my favorites: URI opens up 3% and is now trading down 5%.

By my book, there is nothing to be gained by buying this dip yet. Instead, CYA and watch how this down move behaves. Remember, it's the stocks that count, not the index. That being said, Fibo says says S&P 1336 - I say 1332 -, but the next stop could be 1293 - then 1254. This does not change my long term view, we're just back to normal vagaries...

Disclosure: I am short IBM, MMM.

Additional disclosure: and I am now 10% net short. But that's only for sport. For overall disclosure, please refer to my articles. Remember, you can't follow my advice unless you do so at your own risk...