Dear Subscriber,

Wow! Talk about wild and crazy markets! The swings are incredible.

The Dow Industrials — down 500 points one day, up 400 the next. Down another 500 the next day, then up 300 and change.

Gold, marching to one new record high after another, but swinging nearly $100 a day from high to low. Silver swinging a dollar or more, as much as 5% in a single trading day.

The bond market, exploding higher, then dropping nearly three full points, or almost $3,000 in value in a single day. That's more than 2%, which is huge for bonds.

One day, Europe is melting down, the next day the United States is reeling.

Quite frankly, in my 33 years in the markets, I have never seen such wild market moves!

So this week, I want to update you on the action and what I'm seeing. To do so, I will also reference some of the tables I published in last week's column.

I'll start with the Dow Industrials. As you can see from the table to the right, republished from last week, the Dow has already plunged through the first four support levels.

As I pen this column, the low stands at 10,604, just 37 points above the 10,567 support level.

This is VERY significant. Unless the Dow can get back above 11,542 in short order, it means that four important sell signals have been hit and confirmed.

Next comes the critical 10,567 level. A closing below 10,567 followed by a close below 10,386 (not shown in table) will indicate that the Dow is going to head to the 9,034 level.

I do indeed expect that to happen. The market may thrash a bit more before taking another leg down, but I want you to be fully prepared for it. More on that in a minute. Next ...

The S&P 500: It, too, has plunged through critical support levels. Here is the table I published last week.

As I pen this issue, the S&P 500 is trading at 1162. It has cleaned out support levels at 1279 and 1241, and is now trading below a weekly support level at 1173.

If the S&P 500 closes below 1173 on a Friday (which it may have done by the time you read this column, since I write it the Thursday prior to publication) — then I fully expect a plunge to the 993 level.

The Nasdaq, meanwhile, has also taken it on the chin, though it's relatively stronger than the other two indices. Here is the table I published last week.

The Nasdaq plunged as low as 2331 — a mere 14 points above the third support level you see in that table.

However, by closing below 2567 and 2459 — the Nasdaq has hit two important sell signals on my system, strongly suggesting lower prices ahead, probably heading toward the 2053 support area, another 10%-15% lower.