What Bounce?

I scaled out most of my longs yesterday and warned about 1175 being the next spot. When the market can't get up off the mat after being down hard, it is telling you to look out below. Overnight, the market agreed. Futures dropped to 1166.75. Dexia's bailout deal is coming apart and so is everyone's favorite savior, China. Their PMI numbers signaled contraction. But we knew to expect that sooner or later, didn't we.

My UPRO position is down 2% (the position, not my account) so I will not add to it. Today I'll use SSO and use the same heavy scaling tactics while bearing in mind that the S&P could attempt 1160 just as easily as it could bounce. I'm lowering my upper targets to 1200-1208 because price dictates that I should.

Year after year, the day after Thanksgiving, the market vaults higher on low volume, usually when I'm off somewhere in the country without internet access. If there is no bounce this year, the turkey will have the last laugh.