The Bears were back firmly in control today as the selling persisted for the whole session. The indices all closed very near the lows of the day. And there were only a couple of small rally attempts that got quickly overturned. It’s a bear market. And today was bear trend continuation.

$SPY moving lower to $380 looks like a given at this point.

$QQQ closed on a support level. We will have to see how strong the support level can be. I don’t have a high confidence level that it will hold. If it doesn’t hold $258 is not out of the question.

$IWM shows a measured move price objective between $155 and $162 (depending on the measure) on the breakdown of the weekly bear flag.

As I’ve been saying for a few weeks now, any new trades to the long side are suspect at best.

• Manage your risk very carefully

• Know your timeframe

• Focus on only the best setups — if you can find any.

Keep in mind that cash is a position. There’s nothing wrong with sitting on the sidelines and waiting until conditions improve.