Stocks are hard down overnight in overseas markets and stocks index futures on US indexes are also hard down.

The sell-off has occurred in response to resignation of Brazil's finance minister and a 9 percent devaluation of the currency.

Previous apparent crises have generally presented opportunities to buy rather than to sell unless clear topping patterns have developed. Although stocks are now high, chart patterns generally remain very strong for the indexes and for most stocks, particularly for ours.

There are important support levels at 1190 for cash S&P and 9250 for the Dow, or about 3 to 4 percent below current levels.

We are always nervous about stocks at these levels. The good news is that profit reports for many leading companies are coming in above estimates and the economy continues on a roll. Also there are tentative signs of recovery in Asia, not of further implosion.

Hold all stocks for now. We do not at this point see any short sales.

Stockscom