What would surprise you the most right here, if the market broke down to new lows or rallied 300 S&P points? I think I know what most would say. New lows are inevitable, and right now! That may be the case, or it may not be.

After breaking down hard today, the S&P is now testing the 840-850 level again for the third time. It's possible, just possible that a significant rally could ignite from this area. There are some divergences I've spotted on this third trip down that suggest this is a real possibility that needs to be considered. There are also some indicators I follow that say "no way" but it's always that way.

The reason this is important to consider is because any rally from here will trigger a buying panic like we haven't seen before. If you're short with no plans to get out, you could get torched. No one likes getting torched, right?

This could happen as early as tomorrow with a big move down, possibly a gap, in the first hour of trading. A possible undercut of 840 would be followed by swift buying interest like we haven't seen in a while. It would pick up steam and close near the highs. After that it could be a foot race.

This may be the last chance for this market to salvage any public trust, assuming there's any left at this point. If this turns into the continuation pattern that it may be, there really is no telling how much farther it could fall. It could even fall farther than Auburns football season! (Sorry Tigers, right Darrell?)