After having a brush with hurricane Gustav and having some technical difficulties with my website, I'm finally able to update you on what's going on. The first day of September greeted traders with a variety of surprises. The day started with a big drop in commodities along with a big jump in equities, both surprises to the market. Then as commodities tried to pare their losses, stocks began to roll over and gave it all back and then some by the end of the day. I warned you about being long oil. Today you found out why. Oil is simply descending the right side of it's parabolic price chart. You don't go long on the right side of one of these charts. If you don't believe me go ask the Chinese. The Shanghai Index has been ravaged by a rapid descent down the right side of it's chart. So much for the Chindia miracle. The NASDAQ had the same formation in the 2000-2002 bear market. This really isn't hard to spot. The hard part is turning off the noise around you of people explaining why price can't fall and you've got to get long and peak oil is here and global warming is gonna kill us all and blah, blah, blah. The chart doesn't give a rats behind about peak oil or CNBC. It only cares about peak frustration and if you've been long oil, you've been feeling it. If you really believe in peak oil then wait until the chart completes around $50 a barrel and then buy all you want. As far as stocks go, the S&P's been trading in that 1262-65 up to 1300 range for quite a while. After hitting the  top of the range this morning the selling hit. There was a pause around that 1291 level but once it broke down the selling accelerated towards the lower part of the range. Until this market breaks out of that range it's gonna keep doing what it's doing. That being said, a move down to 1265-62 will be bought for a supposed trip back up to 1300. If 1262 breaks down it will trigger a lot of stops and the market will accelerate to the downside very swiftly. Below that is 1250-1247 range followed by 1234-1230. After that is 1200 and the abyss lies beyond that. The chart left a long tail reversal today and that's generally bearish, but the internals weren't actually that bad. There were more advancers than decliners on the NYSE for instance. The NASDAQ was about split. I think tomorrow will tell us a lot about stocks and any potential they may have in the near term. Until then, be careful.