When the new trading week begins, look for the market to make an attempt on finding support near the August low. If it fails to hold above this low, then the likelihood for the market to dip into the support/resistance levels made in August 2010 is high.
This is a tricky period to initiate new shorts and definitely dangerous to go long. I will remain very cautious until the market either breaks below the August low or it has formed a short term reversal of higher low/higher high pattern.
Here are the updated charts highlighting some critical levels to monitor.
DJIA:
SP500:
SPY:
Nasdaq 100:
QQQ:
