The huge gap lower this morning has obviously thrown off any promising signs we saw yesterday afternoon. The corrective price action in the market at-large since the middle of September continues to drag on in the face of high bearish sentiment and largely bullish weekly charts. Of course, the shorter-term timeframes comprise the long-term charts, in aggregate, which always makes them fluid situations. Nonetheless, as I wrote for 12631 and Weekly Strategy Session members over the weekend, this week likely to be a “make or break” one for the markets as far as gauging just how deep this correction will go.

On the plus side, we do have some interesting positive divergences in the transports and select tech. From my vantage point, the key in these types of markets is keeping losses contained, but not panicking either.