This week is busy with big retailers earnings (Home Depot, Wall-Mart, Target, Sears). Plus we have also Dell and HP reporting on Thursday. Economic reports are quite light. Most important ones being on Tuesday. So much of the direction will be most probably determined on Thursday by earnings. Stochastic on dailies is getting oversold so we could see some short term buying action. At the same time we are in bearish territory due to the bearish crossover on MACD last week. This is same for both DJIA and AAPL. Because we are at the beginning of larger downtrend I do not expect neither DJIA nor AAPL to retrace upwards more that 50%. I expect DJIA bounce back somewhere close to 10,500 levels and AAPL to bounce back somewhere to 257 levels. Once (and if) we get this little bounce back this week, I expect continuation of downtrend. Shanghai is at the moment strongly up and London is slightly higher. Japan, which I do not pay much attention to got hit today due to the poor GDP numbers there. Still both Shanghai and London are at the bearish cross on daily MACD (and bullish cross on slow stochastic, same like DJIA and AAPL). So I expect them to do the same. Little bounce up this week and then continuation of downtrend when stochastic turns back negative again in few days.