Setting Up For A Bounce

Yesterday we completed a 1:1 downward Fibonacci expansion. Volume accelerated. Tradestation data showed a whopping -1466 ticks. It was a good flush. Odds are we correct a bit from here before another down move of significance would occur, if at all. Note that the 50 day MA is at 1165.35 on the S&P cash index. The .382 retracement from the high is at roughly 1153, and the 200 day MA is roughly 1132. So there are multiple bogeys to be aware of lower, but markets do not move in a straight line, and we could easily bounce to 1191 on the ES. World markets are mixed. Commodity markets are mixed. I'm betting the market takes a breather, using calls, aware that marginal lows are possible before a strong up move.