Todays move was fast and furious. The volume, however, was well below the 50 day moving average. That indicates to me that it was more "running stops" than any institutional selling. That spells correction.

I expected this move to press a little higher before turning back. 840 and 875 loomed large, but it appears the news on GM was surprising enough to jolt the bears to life right here.

So, if this is the correction of the up move from the March low, how far down does it go? Here's your numbers: 770, 750, 741, 731, 700, and lastly 666!!!

I believe 750 and 741 are the ones most likely to arrest this correction. 750 is the 50% retracement level of the move off the March low and 741 is another popular support level traders are watching. An up move this strong shouldn't retrace more than that.

But be careful. My own words keep echoing in my mind "the smart money lost their money in 1930-32". Is this how it happened?? Did setups look this promising and then fail? We've had five 90% up days. How can that fail? If that's not an initiation move clue what is?

So.......I'd be very, very careful. As my good friend Sam said "the market is guilty until proved innocent".  And yes Sam, I'm talking about you!