Good morning for those of you safely in cash or bonds this morning.

It's going to be a rough open for the equity markets this morning (S&P futures are down about 33 points or 1.66% at 1930 and the NASDAQ futures are down 84.25 points or 1.95%.

We put forth yesterday afternoon (before the rally occurred late yesterday) that we felt a move from 1944 to 1971 - 75 would take place. However, at the end of the day, we sold our longs before the close because of our nervousness heading into the overnight session.

The rally that we called for took place - partially. The highest the futures hit was 1965 before this new, powerful move lower commenced. We believe that we are in the midst of the move lower and not yet at the end of it.

Best case downside targets for THIS move lower:

• 1900.25 on the S&P futures
• 1888.50

More extreme downside targets for THIS move lower:

• 1862
• 1845

This down move needs to play out. Then, a bit of a bounce should occur. After that, though, we should see one more thrust lower of approximately 50 - 73 S&P points. THAT is when we can consider buying aggressively for a more substantial rally - I'm guessing at this point that it will be a move back up to 2000 - 2011 at the very least (and possibly up to the previous all-time highs).

So, as bad as the open is going to be today, don't get sucked into buying wholeheartedly yet.