However, there is an important daily pivot to keep an eye on this week. That 850 level has marked support and resistance since early October and is what I will be looking to act as support once again IF the market comes down that far. I believe we could see a bounce off current levels midweek to rally up thru 915 but there is also a real possibility we come down to test the 850s beforehand. Either way be ready for both scenarios to unfold by Friday. But be ready to buy the dip in the 850s if it comes and don't let CNBC talk you out of it.
Oh and contrary to ppopular belief todays selloff was not a scary event as you may have heard in tv land. Since Friday morning we are up from 820 SPX. We hit 920 Monday...we came back to 888 today. That, my friends, is called profit taking and until a retracement proves to be more than a retracement of the prior move then you should not view it as worrisome.