Here comes the retest. No rally with oil below $30.
Bad earnings from Intel (INTC) and Analog Devices (ADI), calling into question enterprise, server, and cellphone/telco growth, with bottom thesis in PCs blown to smithereens.
And no Fed governor to save us.
So we have to watch for the August lows, which we should open right through. We have to see if oil can reverse and build on what it had yesterday, the best day in August.
Most important, we have to see if the same buyers who came in yesterday at the lows are willing to come back ahead of a three-day weekend.
We are minus 7 on the oscillator, which would normally protect us from a down 2% day.
Down 1% or less would be a victory for the bulls.