On the attached chart we are testing the first VPOC (Volume Point Of Control). If the market can’t get through here, it is in trouble I think, but the jury of buyers and sellers will decide that as the week unfolds. If the buyers can’t grab a foothold above Friday’s lows, then the next leg down won’t be as orderly.

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My view coming into Monday was that buyers would indeed grab that foothold. And they did that Monday, but they need to build a base here. I don’t have any analysis to back this up, but there was something about Monday’s trading that didn’t feel good. If we fail, it is going to be a lot nastier than the orderly decline of the last few weeks. If we can manage to stay afloat in this area, we could have a decent rally. So this week is important. I expect to have some positions on before the end of the week, one way or the other. Which direction that will be, not sure yet.