Some financial commentators are now factoring in the possibility that there could be a disintegration of the monetary union among the EU states upon which the euro currency was founded. Such a development, which until recently would have seemed almost unthinkable, could have a calamitous effect on global capital flows with hard-to-imagine ramifications.

The Dow Jones Transportation Average (^DJT) has plunged more than 12% this week so far, and a possible downside target here is around the 3500 level which represents another 15% or so below the close yesterday.

The housing sector index (^HGX), reflecting most of the homebuilders and construction materials suppliers, has not violated the upward trendline.

Clive Corcoran's focus today will be on letting the charts themselves reveal the dramatic and precarious state of the capital markets.

Threats of financial contagion are crippling the investment grade corporate bond sector. Clive Corcoran thinks LQD would be worth monitoring today.

Clive Corcoran thinks that the exchange traded fund GLD could be volatile short term, but there are positive MACD and MFI divergences on the chart as well as evidence of a bullish pullback pattern.

Warren Buffet’s decision to buy into Goldman Sachs will help to spread the notion that the worst could well be over for the financial sector.

The chart for the exchange traded fund for the regional banks (RKH) has returned quickly to the 200-day EMA but on declining volume.

More on fundamental grounds, but supported by some weak technicals, Clive Corcoran would suggest that consumer discretionary stocks is not one of the sectors to be long in the intermediate term.

The most dynamic move in the US equity indices yesterday was seen in Clive Corcoran's favorite barometer index, the Russell 2000 (^RUT) which surged by seven percent and regained a close above the 720 level.