The commodities look too dire. Oil has hit $60 and bounced up off that in trading. The S&P500 made an intra-day double bottom. There's a spiky peak on the VIX and a spiky down on the daily S&P500. At close yesterday, the S&P500 rallied above the downward trend line.
Watch the action at open today to tell how it'll play out. If it fails to break below yesterday's resistance/support, a 1, 2, or 3 day bounce is upon us. Oil's Bearish Rally = Stocks Bearish Rally
Here's my scenario if the support holds today in trading, and I think it will by looking at the futures.
S&P 500 Daily Chart
A small rally over the next one or two days would be a healthy movement that lets everyone take on short positions for the best declines still to come.
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