Looking Beyond the Wreckage

This was a day for the history books. Not only was the point-loss breathtaking, with the DJIA down more than 500 points for a while, but the breadth and intensity of the selling were at levels last seen during the crash of 1987. We have had plenty of ugly selloffs in recent years, but none that was as broad and intense as this one.

I can go on and on about how ugly the action was today. Breadth was horrid, volume heavy and key technical levels cracked. There was nothing positive to be found no matter how hard you might look. Our task at this point isn't to moan and groan about the ugly action, but to figure out what to do in the days ahead.

If you read the technical analysis textbooks, we now have a clear breakdown and should be doing some selling. You absolutely have to make sure you have some idle cash on hand now that we have cracked support. ...