Editor's Note:

I would not read too much into Monday's oversold bounce. The bounce could last a couple days or more but it will probably turn out to be a new entry point for bearish positions. Stocks don't usually move in a straight line for very long. It's three steps forward and two steps back, or vice versa on the way down.

Pick your entry points and let the market come to you. I'm expecting stocks to roll over at short-term overhead resistance. However, this week could be volatile or just the opposite, boring and sideways. It all depends on how investors choose to interpret the manufacturing and economic data out this week and whether or not traders decide to step to the sidelines ahead of the jobs report out on Friday.

No new trading candidates tonight.