The 12 handle sell off in the Es from 1558 to 1546.25 occurred before Regular Trading Hours. Through out the day, the market rallied all the way back- confounding the shorts. The advance was OK with 1596 advancers to 1425 decliners and 217 new highs, but we need 495 or better for a confirmation. So far the new high indicator is a negative divergence. Volume was terrible at less than 2M Es contracts. We continue to think that this is a correction pattern on a longer term chart so the intraday and even the daily charts will distort the overall pattern. Still, you can’t short when our market is open. Only overnight shorts work and then if you don’t cover at 9:35 you’re screwed. The VIX doesn’t want to go back down, AND the McOscillator flattened out. I think if you can sit through the spikes you can make money for a correction with bigger range. We traveled 24 handles round-trip today, so there’s hope that with the right conditions, all of that can be to the downside. Hope is the only strategy you have right now if you’re bearish. This market is loco.