The market was sharply lower in early trade and bounced back late morning and again in afternoon trade to close a little lower. Down just over 1.7% at one stage, the XJO closed 0.4% lower, or 18.4 points. The XJO tagged a support area that held up in late November 2010 around the 4557 mark and firmly rejected the lows for the day. There is a possibility we may see a bounce of some description over the next few days. As mentioned Friday, there is little point chasing shorts here, but more prudently, waiting to see if we do get a corrective bounce in the coming days and looking for shorts if the downward trend looks to reassert itself thereafter. More aggressive traders could look for divergence trades for the bounce but without the index exhibiting any type-A divergence this is a high risk strategy. A lot of setups today exhibit wide ranging bars and therefore lack a low risk entry and acceptable risk/rewards. An interesting few days ahead.