Its been a great two days for us bears, especially considering the gains from yesterday came from a late day breakdown that confirmed the 1040 break through on the S&P from the day prior. The thought of holding anything long in this market right now is a crazy notion, and one that I wouldn’t want to test. While we are due for a bounce, ultimately we are going to keep going lower. At this point, it seems inevitable for the S&P to slip down in the 900’s, and more specifically, 975ish, as there will likely be some support kicking in at those levels.

I’ve tightened a couple of position’s stop-losses with SPDRs S&P (SPY) now at 109.91, and Fifth Third Bancorp (FITB) dropped down to 13.95. Also, I covered my position in NSIT at 13.13 yesterday.

This morning will be a busy one as we have the Jobless Claims (a prelude to tomorrow’s Employment number) at 8:30am EST, followed by ISM Manufacturing Index, Pending Home Sales, and Construction Spending at 10am, followed by tax-cheat Tim Geithner speaking before his liberal goons colleagues on the Senate Foreign Relations Committee.

So expect a very busy morning and perhaps some whip-saw action from the market in the process.

Here’s Today’s Trade Setups.

LONG: American Medical Systems Holdings (AMMD)

SHORT: Robbins & Myers (RBN)