Temporary

Temporary was George W. Bush's nickname at Skull and Bones.

Elsewhere, futures are showing signs of at least a temporary stop to the bloodbath. They have made what amounts to a marginal low and have rallied sharply. A marginal low in the S&P cash this morning could set up a spirited bounce. 1980 is still possible.

Even if that were to occur though, the market might not be out of the woods. The German DAX is telegraphing major technical damage.

This was first mentioned in these pages back on August 13th:

"I don't like the fact that the German DAX broke its rising wedge. The rallies throughout the major European indexes look corrective thus far. I consider this to be fair warning for our markets."

The DAX has since blown through those August lows, those same lows which had broken its rising wedge.

The point is that our markets are on borrowed time, at least for our own August lows. The level of note is 1904.78.

I still maintain that we're in the first leg of a larger 3-legged correction and that higher highs are still possible. Why do I say that? Volume.

This has been a market plagued by upside down volume since late 2009 -- upside down meaning more volume on corrections than on rallies. Never good.

Here's the opportunity: enormous volume at the Alibaba top. It does not matter that it was an options expiration. It matters because an out-sized amount of business was transacted the day the market reached 2019.26. It's a target for a retest.

Today the set up is there for a marginal low reversal. If one doesn't happen within the first 30 minutes, it may be prudent to step aside for 1904.78. Watching 1938.63 for a higher tell.

The euro looks crappy suddenly. I'm flat.