As I woke up at 5:30 a.m. this morning, I’ve got to say I wasn’t at all surprised to see this on the ES:

(Click on image to enlarge)

In other words, the ES bouncing off the exact same trendline I pointed out before I toddled off to bed. It also agrees with this post yesterday in which I suggested that the big drop was just about done. What a pity.

There is one shiny light, though, and that is JC Penney, which I’ve mentioned as a short, oh, about twenty times here. It’s lost nearly a quarter of its value this morning (pre-market), and this is another one of those “Bombs”. Indeed, yesterday seems to have been an awfully good day for spot-on posts!

Oh, and if you need a fresh trading idea, instead of hearing me pat myself on the back for stuff yesterday, I offer you this:

Trade accordingly.