It was a day for the bears as they certainly stepped up and took control today as the market came under significant pressure. The XJO closed down 72.5 points, losing 1.6% for the day. Leading the way were the Financial, Energy and Information Technology sectors, all down more than 2%. Our big banks had a particularly ordinary day, especially NAB which was down 2.3%. Concerns over the US debt ceiling issue with talks breaking down is the main media story. US futures were down around 1% in night trading from market open for much of our day. At time of writing they have improved slightly but are still down around 3/4 of a percent or so. China has also been down heavily – just under 3% currently. We have posted a few shorts but bear in mind the market sits just above a support zone we have mentioned often in these pages. More conservative traders may wish to wait for a break of these levels should that occur with a view of 4200 being the next target lower.

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