Editor's Note:

The stock market's oversold bounce is struggling. There is a very real chance that stocks break down under key support soon. If that happens the breakdown would suggest that stocks are in for a much deeper correction.

Investors are struggling with a lot of different headwinds from a possible slowdown in the U.S. to the sovereign debt crisis in Europe and inflation worries overseas.

I am not adding any new long-term LEAPS candidates tonight. Cautious investors may want to consider some sort of hedge. Put options on the major indices or calls on the VIX might work.

I don't see any changes from my prior comments which I'm reposting below:

Earlier Comments:
A drop to 1,250 on the S&P 500 would push the correction to -8%. If the S&P 500 breaks down under 1,250 then it's probably headed for 1,200, which would be almost -12%. A drop to 1,200 would also be a 50% retracement of the S&P 500's rally off the lows from last August.

We may want to consider the idea of waiting until the market gets a chance to react to July's Q2 earnings news. That would mean our next entry point may not be until mid to late July.

If we do happen to see a bullish entry point (on our watch list or play list) we'll need to trade defensively and keep our position size small to limit our risk.