REACTIONS

Markets are set for another lower open on the heels of problems in the currency markets (rippin Yen). My take, the markets would have rallied yesterday except for the bad news that hit the wires regarding the issues at CFC. So until the news cycle changes or the reaction to the news cycle changes, the markets will probably follow the path of least resistance, lower, regardless of how oversold it becomes or where the VIX trades.

FWIW, I remember trading in October 2002 (I believe it was the 10th) when all of a sudden the futures ripped higher on a bad consumer confidence report and I realized the reaction to the news changed drastically. The NDX ripped from 800 to 1,100 in about 2 months and all the shorts got slaughtered. Probably happens again - only asking that someone let me know first before it happens.