Editor's Note:

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 added two new plays last night. I'm suggesting we sit back and watch tomorrow. A few stocks that caught my eye were: SRCL, CLW, MICC, GS. SRCL continues to show relative strength. CLW looks ready for a significant breakdown under support near $80. MICC has broken its long-term up trend. I'm watching GS for a dip toward support in the $152-150 zone.

- James