AA - breaks key support

Alcoa (AA) dropped 4.6% to close @ 8.71. With a somewhat doomy outlook, and what are weak earnings, the stock is continuing to fall away from the recent QE spike high in the upper 9s.


AA, daily

Summary

With the underlying global economy slowing, and the threat of the US moving into recession in Q4 or early 2013, AA is a typical example of what might be ahead for the broader market.

Today's drop broke key rising support, and the next obvious target is a re-test of the July low.

If the July low is taken out, the next key level is none other than the March 2009 low of ...$5.00