Bounce , Bounce, Bounce.....

It looks fairly sure we'll get a bounce here. You may want to buy some Ultralongs or FAS , UWM before the close. This could last several days possibly.

Not looking good for a bounce

The blue is a positive divergence on the 1-min DIA . The red arrow at the top is the failure of 3C to confirm the retest and the volume is kind of ugly. It doesn't mean it won't turn on a dime and bounce, but it's not looking great.

Dow vs. The NASDAQ

The Dow is inline to bounce off the support of this hammer, if not it will be the first average to break the top. However, the downdraft created by the false breakout in the NASDAQ family of two is a strong gravitational pull down and usually the market herds together. It's worth watching because if it doesn't bounce then a very ugly day it could be indeed!

If the Dow breaks, the S&P won't be far behind. Remember, watch the SPY for a break of $104.35, it's your cue to quickly add the last 25% (then you should have 25% in cash) to your shorts.

Today could be the day, or we could get a bounce which would be great for all the newcomers to get their core position setup.