Already in recession.

Former Federal Reserve Chairman Alan Greenspan contended that he had little to do with the housing bubble or credit crisis despite criticism that the Fed kept interest rates too low under his watch.The Fed cut rates from 6.5 percent in late 2000 to 1.0 percent in mid-2003.
Greenspan said the cuts were aimed at increasing liquidity in the financial system and heading off deflation, not boosting the housing market.
Greenspan said "we are in the throes of a recession" but that it was too early to tell how deep it would be.
“We have not confronted a situation like this in over half a century," he said. “And we don’t know the dynamics because we have no real information. What we are looking at is basically a tug of war between the real economy--both in the United States and the rest of the world--and the financial systems.”
"The core of the subprime problem lies with the misjudgments of the investment community," he wrote.Subprime-mortgage securitisation exploded because it appeared mis-priced and there were few delinquencies and defaults, "creating the illusion of great profit opportunities.

Tracking the Dow on Tuesday.08/04/08

2:30 pm : The stock market falls to its worst level of the session following the March 18 FOMC minutes. Traders were disappointed to hear that many Fed officials felt that a contraction was "likely." Although somewhat sterner words, this should not come as too much of shock, as Bernanke noted in his testimony before Congress last week that the economy "could" contract .

Towards the closing bell were seen two spinning Jenny,ready for looming into a nice fabric for Ms Dow to serenade.

The Tuesday's low was very well syncronised right to previous Thursday and Friday lows hence forming the neckline.
It's being beautifully dressed up where the knight with his right arm sword hammering the door to leave the castle.The journey to the Northern Light begins.