Groping for a low?

There is not a whole lot to say here. The markets are oversold enough for a bounce or for a severe breakdown.

My best guess is that the price action will be choppy into the Friday option expiration. If this occurs with the market breadth holding up, the Advances-Declines staying above -2500 or so, we might have a successful retest that could last for a few months at least. If the market breadth breaks down then we are back at square one and will need to wait for another low at a later date before we can draw any conclusions.

The McClellan Oscillator for 2/18/09
Click to enlarge