Brief Update

As difficult as it is, I'm trying to keep the bigger picture in mind. I'm still viewing this as an overdue correction in a bull market. I must admit that I'm drawing my lines in the sand as we speak and I'll highlight a couple of them below, but a 7-10% dip was what I was expecting until the strong start to this week. We're in that window now, but it appears the news headlines will trump any lines I can draw on a chart. Oh well, let's do it anyway...

The $USD in coming into resistance at the $80 level. A strong move back above this level would not be good for the indices and certainly not for commodities (of which I'm heavily invested). This will be an important level to watch moving forward...

The shorter term charts have all turned back negative and I find myself roughly 60% invested on the wrong side of the trade. The question now becomes whether or not we see a dead cat bounce, which could provide a great opportunity to get hedged, lighten up on longs, or get net short... depending on how it all unfolds. I don't believe we've seen the bottom yet. The other scenario would be a break down hard with an ugly open tomorrow and a strong flush to end this decline. I favor the latter, let's shake'm out and move on. Remember, 1035 on the S&P marks the 10% off the highs spot...

Prepare for the DOW below 10,000 headlines and a healthy dose of the "end of the world" scenarios on any weakness here tomorrow...

The Nasdaq simply looks to be in freefall...

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The $CPC is headed in the right direction and a move to 1.20 or better would correspond well with an intermediate term bottom...

Chart Courtesy of http://stockcharts.com