When viewing the markets it is a good idea to come up with scenarios. Many of these will not come to pass, but at least you have a plan in place should one of them develop as anticipated. The key is to keep an objective mind, allowing the market tell you what position to have on based on what is actually happening, not what you want to happen.

The S&P 500 continued it’s decline despite what initially looked like the start of a promising recovery on Thursday. At this current juncture, the Index continues to be oversold with a bounce from current levels possible or another move down to 1844 before the bottom is finally in for at least the short term. Key resistance on the upside to overcome for the S&P500 remains at 1960.