Today was a big down day in the market. It has been a while since we have seen some selling of this magnitude. The market gapped lower to break past Friday’s low, and continued lower for the first two hours of the session. Eventually, the market caught itself and chopped around sideways for the rest of the day.
Today’s break of the 1194 level (Friday’s low), confirmed my downside bias of the market. So, what’s next? Right now, I am looking for a market bounce before we move lower. On the hourly charts, we are oversold and have found a level of support. I would not be surprised if we got this bounce over the next day or so. I will be looking for shorts to play as I wait for this bounce.