Wall Street, Euro-Zone

Friday, Euro fall from 1.4320 to 1.4160 (160 pips, > 1%) against the US Dollar over the disagreements on how to handle Greek debt problem and worries on the default. Euro-zone officials were expected to pressure Greece to announce more austerity actions / steps on its debt problem.

At the same time, IMF approved 26 Billion Euro Loan for Portugal.

The news and economic pressure spread across Euro-Zone to Wall Street, last night, Dow lose -93.28 pts (0.74%) and close at 12512.04

Dow posted the 3rd losing week, weaken 0.7% this week.

DJIA on Mon 23-May-2011

Coming week, I am expecting Dow to continue trading in a downward channel, resistance at 12650 region which might attract Sellers to enter into the market.
12460 is the level which Dow is currently showing a temporary support.

My view on Dow is slightly bearish and I am expecting a pull up above 12650 to establish new Shorts.
Short Term trade aim at 12460 as profit target.

From a bigger picture, do you see something similar in play?
I am using a YM Chart as the study guide, I have marked the similar channel with a black crayon line.
Once YM breakout below the channel bottom, you will see continuous 4-5 days of deep, fast correction.

However, if the US Government is doing something else to stimulate the economy (again), market might continue the uptrend, go above 13000 and aim at 13300 target in 2 weeks.

I am joining the game to short at 12650 channel top and would hold the position for 2 weeks looking forward to successful break-Down.

Nasdaq-100 on 23-May-2011

Currently trading at mid range, stay out.