The correction we expected occurred this week as the Goldman Sachs investigations accelerated and the Eurozone failed to act decisively to address the debt problems of Greece. The correction came despite an earnings season for the record books and an improving economic picture.

The NASDAQ Composite completed a bearish Head and Shoulders Top pattern on Friday. 'Completion' occurs when the stock passes through the neckline (a line drawn through the lows between the two shoulders).

To determine the target loss after completion of the pattern, we measure the difference between the head and the neckline 9a) and then subtract it from the point where the price crosses the neckline(b). We find that this gives us a target very similar to the former resistance line at 2432 (c). Once passed, resistance becomes support, so we have two indicators that the index could fall to about 2430 before recovering. That is only 1.2% below Friday's close so we could expect a further decline on Monday with a late afternoon rally.

Weighing against this purely technical analysis is a deteriorating position in the Gulf as the oil spill threatens and the price of oil moves up in reaction to possible tighter drilling controls. Furthermore, although a Greek rescue plan is due to be completed by Sunday, massive street demonstrations will undoubtedly result and the Greek Government's resolve to implement severe austerity measures in the face of massive domestic revolt will continue to unbalance the financial markets.

Last week we sought your guidance and the question was, given the limitations of volume data, should we send alerts on price alone?

The verdict is in: yes, send alerts on price alone.

Beginning Monday, we will send alerts as soon as a stock rises to its breakout price (long positions) or falls to its breakdown price (short positions). The alerts will include a note reminding you that volume has not been taken into consideration.

Included in each alert will be a link to Google Finance for the particular stock. There you can track the price in real time, compare it to other stocks in the same industry group and read the latest news on the company.