The action remained ugly throughout the afternoon and into the close. More Fed jawboning and a report of anthrax served as the catalyst to reverse early gains and end with heavy losses. Despite some relative strength in Health Care and Banks every major sector fell, led to the downside by Gold, Oil and Semiconductors.

The S&P 500 closed below the critical 200 day moving average as well as below long term trend line support established in early 2003, while the Nasdaq managed to hold the key 1250 area however looks wobbly and may not hold.

There is no question that the market has seen a change in character and we must proceed with caution. Until we have some interest rate clarity the choppiness will continue and expanding your time frame is out of the question. If you haven't lightened up yet take some time this evening to go through the portfolio and assess what needs to be cut or pared back.

The market is surely doing a good job in washing out the bulls and a big snap is in the cards, however we may not be done yet so patience remains the key.

Hang in there and rest up. Well see you back on the front lines tomorrow morning.

Have a good evening.