SPY chart from Shaza

Look for the measured move line on the bottom of the chart...that is where I think the markets may head! Shaza

Market Preview: Bracing for More Pain?

NEW YORK (TheStreet) -- The ugliness of the past two sessions has the Dow Jones Industrial Average on pace for its worst week since October 2008, just weeks after Lehman's implosion with fear still running rampant on Wall Street and Main Street alike.

That kind of precipitous decline, coming on the heels of August's extreme volatility, shows just how nervous investors are about the global economic situation. The rejiggering of the Federal Reserve's policy statement on its outlook for the U.S. economy was a major factor in the beatdown suffered by stocks since Wednesday afternoon, but the apprehension about Europe can't be discounted either.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, believes the markets are bracing for what has for weeks now seemed like an inevitable headline. He says the Fed's shift was "nothing more than a statement of the obvious" to justify its $400 billion so-called twisting of the yield curve.
"The real issue, then, is that the markets are increasingly seeing the first sovereign default in Europe -- Greece -- as just a matter of time, and probably not much time at that, so they are starting to brace for a fallout," he writes.
A default will knock the battered and bruised banks on both sides of the Atlantic down even further, and create another roadblock for the global economy. Also, one of the undercurrents of Thursday's selloff was the commentary from FedEx(FDX_) about weak volumes in Asia. Already dealing with fears of a double-dip recession in the U.S. and the instability in Europe, the prospect of a cooling off in Asia is a dire one to say the least.
The action in another asset classes on Thursday underlined this point with the 10-year Treasury bond's yield down to 1.73%, oil sinking to a six-week low, and gold losing almost 4%.
As for Friday's scheduled news, there isn't much. KB Home(KBH_) is really the only financial report of note on Friday, and the home builder isn't expected to bring much cheer as Wall Street is looking for a third consecutive quarter in the red. The average estimate of analysts polled by Thomson Reuters is for a loss of 19 cents a share in the August-ended period on revenue of $380.6 million.