Pre-Market Analysis

Futures are trading down about 5 points.  The trendline off the lows has been broken, so a has topped.  I count five waves off the high, so we should probably see a bit of a bounce into the open to short before b bottoms.

UPDATE: Lots of action, as we're down 14 now.  I don't want to short a market that's down 14 points already, nor am I that enthusiastic about buying it.  At this point it looks about like that gap fill is all we're getting out of this bounce and we're marching on to new lows in a third wave down.  Not sure that I'll get to see a good setup this morning, and in fact I may be better off just watching.  I'll be looking for a good divergence to consider going long, or a shortable bounce for an entry.

The reason is somewhat apropos.  Standard & Poor's shocked the world by placing the US debt rating on a negative outlook, though we are keeping our AAA rating for now.