DOW Jones Industrial Average Drops -315.79 points, 3.02% to End the Week, Caping a 4th Straight Monthly Decline.

Stocks extend their losses into the close, marking the DJIA's 2nd worst one-day loss of 2008. The DJIA drops -315.79 points, testing the lower limits of the bearish wedge technicians have been watching closely. Meanwhile, the Transports (TRAN) sheds 2.68% or -125.41 points, closing down to 4550.58. If you recall, we made a call for the transports to fail their 200-day ema which they did and today the index broke below their 50-ema of 4621.70, resuming the down trend of their "death cross." As we stated many times before, watch the Tranis, for they are the blood-pressure gage of the economy. The real nail in the coffin in this failed recent rally attempt or head fake came at the S&P 500, clearly failing its own bearish wedge. As for the NASDAQ (NCOMP), it trades to down to 09/2006 levels, effectively wiping away 1.5-years of gains to date.

To give you an idea of the negative economic and financial news, some of today's leading headlines include:

* Stocks Fall Sharply on Earnings, Oil Prices

* US Stocks Plunge on Inflation Worries

* US Spending UP, But Prices Rise Too

* Moody's Say Ambac Capital Below Target

* Assured Guaranty Jumps on Ross Investment

* AIG Shares Drop; Housing Market Hurts

* Auto Makers Scale Back Production on Strikes

* Warren Buffet Releases His Annual Letter to Shareholders

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Market  Indices	Start  Week		Ended  Week	Weekly  Change	% Weeks  Change	% YTD Change	% Off  Highs	% Off Lows
DJIA		12381.02	12266.39	-114.63	-0.9 %	-7.5 %	-18.1%	5.4%
Nasdaq		2303.35	2271.48	-31.87	-1.4 %	-14.4 %	-23.0%	3.1%
S&P 500		1353.11	1330.63	-22.48	-1.7 %	-9.4 %	-19.4%	4.8
Russell 2000		695.43	686.18	-9.25	-1.3 %	-10.4 %	-26.0%	7.7%

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