After saying on the 30th how a nice scary trip back to 890 or so would be "a good thing", by last night I had given up on that as a possibility. In fact I said that any decline would not be severe. Oops!

I'd be lying if I said the magnitude of the decline today didn't take me by surprise because it did. I'm actually very surprised, and a bit alarmed.  Perhaps too many weak longs jumped on board too late and got toasted today. Perhaps the markets WERE being artificially inflated going into the election as a colleague reported to me today.

Whatever the cause, it happened, and I don't think it should have. That's why I'm alarmed. Maybe this IS the "scary trip" down to 890 or so. After seeing the action today, it's going to take to the end of the week to know. Tomorrow won't be enough. We need Fridays (probably) dismal jobs report thrown at this market to see how it reacts. Markets coming out of lows ignore bad news.

If you're aggressive, you could go long or add to your position anywhere near 900. If the market breaks 875 I'd get out. I wouldn't expect 840 to hold again if that happened. 790-800 would be a good re-entry in that case for a bounce, but I'm not sure I'd hang around long. I still think we have the price low in and that 875 will hold, but the magnitude of todays decline definitely got my attention.