Things were looking a lot brighter in premarket, but in the end bulls were able to push markets into a higher close, even if volume was lighter than yesterday. The S&P nicks a breakout of declining resistance from the September high, but hasn't yet challenged declining resistance connecting August and September levels. Technicals hold on to their bearish outlook. Based on the table listed at the end of this article, the S&P would need to drop to 1,600 to register a 25% loss from highs.

It was a better day for bulls as markets registered an accumulation day with respectable gains. However, only one index, the Dow, made a test of resistance (200-MA on hourly) and was initially rebuffed. The S&P registered nearly a 2% gain. The 20-day MA looks to be the next area of resistance as today marked a sharp break of declining resistance.

It wasn't a day of carnage as yesterday, and with support coming into play for certain indices there is a chance bulls might be able to mount something here. Volume was down on yesterday, another sign sellers could be exhausting themselves out. The Russell 2000, having exceeded its August, could be the first to mount a recovery. Keep an eye on relative performance to the S&P; an uptick here could be the cue for a rally back to channel resistance - a decent return.  Alternatively, fish with GTC buy orders down at channel support.

No doubt who controlled market action today, and Bears weren't stopping at August lows either. The Russell 2000 experienced the biggest hit, undercutting the August low. Next up is the October 2014 low.