Oil is starting to get that look about it that the selling - at least in this time frame - is exhausted. Given that the stock market has traded almost tick for tick with oil now for a couple months, that's a problem not a panacea. There are inventory numbers out this morning so we'll have to see how that shakes out.

After the selling we have seen the past two days, a little pause here with a slight upward bias would make sense on the ultra short time frame. Futures around the globe have traded higher feeling the same, small bounce effects. Our futures are up but they are trading somewhat tentatively in the early going - read that as two-sided.

CVM plays in the experimental drug sector and just signed an exclusive deal with TEVA on a product roll out. The news yesterday moved the stock but will it be positive enough to move it higher?

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We hit some interesting price points today on the listed issues. Both the DJIA and SPX traded to the lows of their high volume swing point breakout bars from the 8th of August. The DJIA, being the weakest of the two, actually closed below that low though and that should provide a little follow through pressure in the morning again. We came into those bars on lighter volume however, and the SPX held, and that folks should provide a bounce of some sort. I closed short positions as a result.

Over on the OTC issues, we saw breaks of the uptrend lines and there we saw the NDX trade into the higher volume bar from the 6th of August. All of this adds up to some sort of mild bounce before further pressure most likely. Had the listed issues stopped at the breakout area which I had talked about being the target last week, then the pull back would have been milder. Now, given the way things are playing out, they want to take them deeper before they are done.

The bears are continuing to pound the financials and the mighty APPL is straining trying to keep the NASDAQ afloat. The way this is working here, it's looking quite likely that we may in fact get that setup of closing near the breakout point on the NASDAQ into the close and getting the retest in the morning. Question is - will the dipsters buy it?

Can't argue the width of the pencil line anymore as there are clear breaks in the trend lines and what's worse is that volume is picking up here. That's not a good sign if you want to be a bull.

I still don't think that things are line up quite right to get the real push over the edge here ... that probably comes later. If the NASDAQ/NDX could push right back into its breakout over the swing, that would probably be a good trade back to the topside for a quick ride but volume needs to taper off a bit as we get there. A slow hard push down today; a retest in the morning would be that setup.

There's been a lot of chatter lately on the Roubini speech given a couple days ago. Here's the transcript of the speech. It's a sobering read.