As you can see from the chart above the markets pulled a fast one on a lot of folks, faking up slightly early morning, only to rip back the other way, and decline for most of the rest of the day. We've been looking for something like this to occur, but it still doesn't really mean anything unless and until we seem some confirming moves. That makes the rest of this week's action especially important going into this weekend. If we see decent magnitude declines tomorrow, many traders may not want to hold on to their positions over the weekend. Their selling out of those positions of course causing even more rapid declines on Friday.
That isn't a theory by the way, but rather just one version of possible events. At this point it really could still easily go either way. In fact, the odds are probably slightly with the bulls at this time. We'll be keeping a close eye on the US indices in the coming days, and you should too. Stay safe out there!