The 875 equivalent level was hit in the futures market last night before the open triggering a round of buying by traders. I had hoped it would hit after a gap down in the cash market but that's how it goes sometimes.

As you know, 875 was the first support level and something almost all traders had circled. So todays move is really no surprise. It's what happens next that's harder to predict.

What we may see is a move to test the underside of the broken uptrend line from the March low. The bottom of that line is now resistance. If touched it could bring the next wave of selling that would retest 875 once again. If that level is breached on the second attempt, 850 would be next. It would surely be bought as well.

However, we have to be aware that the market could just decide to head north from here. Taking out 930 and then threatening 943, the January high, would definitely be a sign that something was up. This is a real possibility that has to be respected. Let price tell you if it's going to happen and DON'T argue with it.

So that's it tonight. Watch the levels and be careful.