9:00am (EST) 

October got off to a rough start for the bulls as they went into the week on the brink of disaster.  The major indexes were testing key support levels and our possible bear market targets from August and we had a feeling they could come into play.  What we didn’t know is that they would be tested so quickly.

On Monday, the bears were anxious to get the week started as they immediately went after our first set of downside targets.  No need to tell you that Greece was the word as Wall Street fretted over the country’s fate on the heels of a key October deadline vote.

Tuesday is when the wind hit the fan and we knew the market had a chance at testing our bear market targets we listed back in August.  Following Monday’s 2% loss, futures were pointing towards a nasty open and we couldn’t have been happier as we had a half-dozen open put options.

Here were our thoughts on August 7th with the S&P 500 just below 1,200:

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