The last scenario I laid out last night may be playing out in the markets. After hugging the 900 level under EXTREMELY overbought conditions, the bulls were convinced and jumped on. They put their stops just under 885 and in the cruel fashion of this market, it went and devoured them late in the trading day.

With the futures down as I write tonight that puts into play what I wrote last night.....a trip down to 850 or so to wash out the bulls and suck in some new bears before turning on them with a blistering move up. This is a VERY real possibility.

If the markets move lower at the open, perhaps on word that a "Big Three bailout" agreement has been reached, then they will be sufficiently oversold to support the blast up that could follow. Watch for a turn during the day.

That being said, listen carefully. Never take a position with the belief that you're right and the market's wrong. Actual price movement has the final say. The market doesn't care what you think. As a result, never "care" whether the market goes up or down. Only care whether you're on the right side of the move. That's all that matters.

SO, if the market blows through 840, get nervous. If it blows through 820, get out. I'd re-enter on any move back to 740-750.

Today, the bears had their prayers answered, but tomorrow is another day.