Editor's Note:

I'm growing a little bit more cautious given the market's action this afternoon. Traders continue to buy the dips but the bounces are getting weaker. The current short-term trend of lower highs looks like it could finally bear fruit and spark another leg lower. Even if the S&P 500 does break support in the 1180-1175 zone the 1150 level should be strong support and I would consider a dip to 1150 another bullish entry point.

I am still watching SNDK and PDCO for pull backs. SPLS could also be a play on a dip toward $21. Both SBUX and EBAY might be a play on a dip near $28.00.

- James