Mid-week Update

Just a quick note--with the cautious words from Mr. Bernanke, the price of oil, the Mideast and the London terrorist activity, the markets have reacted negatively.

We're now significantly under our "bullish" level of support (which was at 11,200) and have fallen past 11,100 and are threatening 11,000.

Consequently, we are now neutral-bear in our trading bias. We'll need to be above 11,100 to even consider any new longs, and realistically we'll need to break and hold 11,200 to be truly comfortable with new calls.

Short-term puts are more likely at this stage, although given the schizophrenic markets, we may consider trades on their own merits (especially channel breakouts).

A difficult week to be sure.