With the overshoot to the downside, there was the possibility of a pretty big bounce and boy oh boy, did we get one. It was big enough to wipe out the losses from last week and make everyone wonder why they sold again. So typical of this market. Overnight France gets downgraded and Europe rallies in the face of it. That's bullish short term. Apple had a huge move - excessive by most standards yesterday but then the selling in that name was excessive as well. Too much one way and then back the other.

Today you have to think you'll see some attempt to push into resistance and do some sort of test. With the positive holiday setting, this testing could last a few more days but there is some serious resistance overhead now. How the market reacts into that area is the next test that we can use to gauge what comes next.

One thing you have to do with this market is to never assume it will just roll over. When it rolls it will be a massive roll most likely. Enough warning shots have been fired over the bow again to have me take note. You should too. Doesn't mean the bull will end but it does mean the bull is more precarious again and when that happens you have to get more careful until the clouds clear. You have to switch gears and trade a little differently as a result. The trade set-ups change and if you want to make money you have to change with them.