Last night I said 1260 on the S&P and 11,350 or so on the Dow were the last lines in the sand. First of all I meant to say 1265 on the S&P. My mistake. Anyhow, look where the markets ground around and finally closed at today.....1266 & 11,348. To me that's the last line in the sand for the bulls to make a stand. It doesn't look good if you want the truth. It appears a retest of the July lows is imminent. I want to be very, very clear here. We're at an incredibly dangerous juncture. Tim and I have been discussing this potential setup for a while. I thought it would develop after the rising wedge formation rose a bit further, but it seems to be here now. It's a very similar setup to 1930 according to Tim's statistical work, and that's very, very bad. So I'll get right to the point. If you're long right here, be very careful.  If your considering buying a retest of 1200 or 10,800, make a smaller trade than normal, and don't leave town. Keep tight stops. The potential for a runaway waterfall decline is very real. I know I've mentioned volume's been light, but that's not nearly enough to alleviate my concerns. If the market rallies immediately here, you could make the case that a trend channel is active. It's possible but doesn't seem likely right now. Tomorrow should give us that answer. That's where things are tonight. I may have another entry later tonight addressing big picture issues. I thought I'd get to it over the weekend but didn't. Later.