Per David Elliott :

Yesterday saw a small pullback in the markets after a new DJ-30 high yesterday.
So far the markets will not accept a move down over -100.
When that happens we will likely be in a market turn.

On the long side I like the TSO price breakout, my next resistance is the $18 area. We picked up the options on that last week.
For the penny stocks we are still long CPST, nice move off the 50 SMA daily.
MVIS had a good dip today. I am still bullish long term. So long term plays hold longs, and swing traders, we will play the dips.
ITW broke out yesterday.
TWC did a MOBO breakout, testing highs today likely.
CCJ, keep an eye on that one breaking out hints yesterday.

Additional downside dip stocks :
CSCO, I am seeing a failed new high close today.
INTC looks like a move back to the daily 50 SMA, at $19.54.
BIDU looks like a Failed new High today with a break of $400 as confirmation.
NCS is a continued short from the daily 50 SMA failure.

As far as the indexes go
QQQQ close below last week’s high after making a new HOY, High of the year today.
That would suggest we have sellers up here and a drop on Wednesday would confirm the weak new high.
SP-500 will give a sell signal if we break 1087 Wednesday, a rising US$ would help that move.
DJ-30 will give a sell signal if we see a break of 9990 on Wednesday.

RE H1N1 UPDATE:
Situation Update
During the week of October 4-10, 2009, influenza activity continued to increase in the United States as reported in FluView. Flu activity is now widespread in 41 states. Nationwide, visits to doctors for influenza-like-illness continued to increase and are now about equal to or higher than what is seen at the peak of many regular flu seasons. In addition, flu-related hospitalizations and deaths are continuing to go up and are above what is expected for this time of year.

LINK TO LATES GOVERNMENT INFO ON H1N1:
http://www.cdc.gov/H1N1FLU/

86 Children Dead From H1N1 Friday, October 16, 2009
H1N1 Vaccine Too Late, Won’t Help Most Tuesday, October 20, 2009

More than 100 new cadets at the U.S. Air Force Academy got infected with swine flu at a July 4 barbecue and fireworks display but quick isolation measures got it under control within two weeks, researchers reported on Tuesday.

Tamiflu, the drug used to treat influenza, did not help any of the previously healthy young men and women get better any quicker;
Nearly a quarter, or 24 percent, of patients still had virus in their noses seven days after getting sick, including 19 percent who had been well for at least 24 hours;

AND OUR MARKET TRIGGER FOR A REVERSAL LIST

What will trigger a good market drop?
There are likely 3 or 4 high probability events.
One, a Fed decision to start raising rates.
Two, a large reversal in the US$, likely caused by a rate increase in the USA.
Three, an international event such as an attack on Iran by Israel. That would like sky rocket Oil prices, Precious Metals, and anything imported into the USA.
Four, a H1N1 explosion of infected school children. And company workers getting sick that cause businesses to shut down.
Five, the final realization that unemployment goes over 10% ,and the foreclosure rate explodes enough to cause the banks to drop sharply, and pull the markets down with them.

I am sure there are several other events, but these are my top 5 picks.

I will again join you on the TOS and TCNET chat WEDNESDAY.