DJIA Head and Shoulders Pattern Adds to Bearish Potential

Daily charts of the DJIA show a maturing head and shoulders pattern, with the neckline looming close below at 8250. As a result, this level marks the proverbial ‘line in the sand’ for the index, and due to the correlated nature of the markets, a break below 8,250 opens the door to broad declines in risky assets, including FX carry trades.

[B]Dow Jones Industrial Average (Daily Chart)[/B]

[I]Source: Bloomberg[/I]