After Monday’s sharp selloff, the stock market tried to rebound but the rally fizzled out rapidly. Options traders tried to play the upside of the market by buying calls. Breadth settled on a strong note : 2036 stocks finished up compared to 1338 that settled down. In summary, there is still too much optimism in this market and it may take some more time to bring our indicators to a more favorable situation. Short term, we expect one more downmove before a countertrend rally starts.