9:00am (EST)

Volatility has been the theme this week as the bears pushed fresh weekly lows following the rebound by the bulls.  The indexes are testing their April lows after the bears cracked the first wave of support but the uptrend lines are still holding and betting against the bulls has been hard to do all year long.

The Dow dropped 138 points, or 0.9%, to finish at 14,618.  The blue-chips tested a low of 14,560 after 14,600 failed.  The next level of support at 14,400 is crucial in holding if there is a close below 14,600 this week.  The bulls will need to add 200 points and clear 14,800 before we can say there will be a run to new highs again.

The S&P 500 declined 22 points, or 1.4%, to end at 1,552.  The bears cracked 1,550 as the index tested 1,543 and we have mentioned a print below 1,540 could be nasty for a fall down to 1,525-1,500.  A close above 1,575 by the weekend would be bullish.

The Nasdaq fell 60 points, or 1.8%, to settle at 3,204.  Tech fell below the 3,200 level after testing 3,186 and the April low is 3,168.  A close below this level would be bearish for a trip down to 3,150 or worse.

The Russell 2000 got pounded for 16 points, or 1.8%, to close at 906.  The small-caps dipped below the all-important 900 level after kissing 899.79.  The MARCH low was 899.31 and a close below 900 would likely get 875, or worse, in play.

Meanwhile, the S&P Volatility Index ($VIX, 16.51, up $2.55) closed above 15 and is sending warnings signs a run to 20 is coming.

Futures are showing a lower open as we head to press:  Dow (+35); S&P 500 (+5); Nasdaq 100 (+10).