I am very cautious of this market at present and have increased my hedge from 20% to 40% overnight. We highlighted in last nights Dow Jones report numerous bearish technical signals that were coming together. if we see follow through it could drive the Dow down toward the 8900 – 9000 support, about 700 points from current levels. Like the ASX yesterday, the weakness over the last 2 sessions has been enough to turn Daily Momentum into the red.