The Dow Jones Industrial Average ($DJI) was back below 8,000 this morning. This is the third consecutive day that the blue-chip average has traded below 8,000. Previous drops below this level have been followed by large upward moves. Should a rebound fail to occur, the danger that the blue-chip average could drop to new lows significantly increases. Trading ranges hold until they don't, and the risks of downside breakout are rising. There is a rational reason for the current weakness. Fourth-quarter earnings have been lousy, the problems in the banking sector are not getting solved and visibility is lacking. <P
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