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LENGTH AND DEPTH OF SELL OFF: DJ: 9036 and Watch: Oct 16th.

Look at the last sell off in June/July, which lasted approximately 16 days and resulted in an 8.9% decline. This sell off is a strong indicator of the current sell off. 8.9% from 9917 is 9036 and16 market days is Friday, Oct.16th. This would also mark strong support. 

A rally off 9000 support would carry us into an end of year Christmas rally, with biotech and semi’s leading the rally. 

The second rational for this type of sell off is because this was a false rally driven by government money funneled through bank bailout money. The sell off will be controlled as well and likewise the ‘Christmas Rally’.
During the sell off I will liquidate: SRS, FAZ and ERY and add to my positions in a three way hedge on obesity with: ARNA, VVUS and OREX. In semi’s I will add to STM.
Good luck and be careful