Watch for a bounce at the S&P 980 Level. Not only is this a strong support level, it is right at the uptrend line of the March and July lows. The rest of the week should continue to drift lower on lighter volume going into the 3-day holiday weekend.

How the market reacts to the Jobless Claims number Thursday and Employment Situation Friday will be quite important. For those continuing to be bearish, don’t worry, we are halfway through the formation of a head and shoulder’s pattern on the top line figures.