Biting my knuckles here: Asia is down huge.

I may cover more towards lunch instead of in the morning.

It’s true there are no leaders or any positive catalyst to send the market higher. Earnings will not be good.

Do I trust the signal or should I be careful? If in doubt, I will cover anyway and step aside.

In case of a furious bounce, it’ll get overbought again, very quickly. To watch in case of a bounce:

^BKX – 70 is the top of the channel, 75 is 50ma on the weekly

^OEX – this is a weekly chart. On the daily, it looks like 565 is the max.

Must remember: the original plan was not to play the bounce, but rather short it. The music can stop at any time.