Market Review

Today's down trending action brings us back below 1050 and into the range of the bottoming tail from Friday. The action today, as well as the close, are very weak. However, there is not yet any confirmation that the market is going to continue down and make new lows.

My bias is neutral at the moment. We need to confirm a move above 1051 for me to feel comfortable being long again. We need to break below 1037 before I really feel comfortable being short. If we do make a new low, we will most likely see the low 1030s and possibly even work our way down to the July lows. The key is going to be finding the correct level between 1000 and 1030 to buy into, because I expect the market to rally up nicely before it breaks down below 1000.

I will most likely sell any new low (below 1037) and If I take any longs going forward, I will not defend them below 1037.