Howdy folks. How was your weekend? You probably already know there's an 800 pound gorilla in the room.... the market's continued breakdown today, which pulled the indices under some critical technical levels. Let's just start there, since it's by far the most important question on the table. Just as a teaser though, today's meltdown could have been exactly what the BULLS needed to see. There's just one small problem with getting full-on bullish here. At a Fork in the Road I'll go ahead and tell you now, the next couple of minutes may feel a little heavier-duty than usual. Sorry, but we can't get around it - where the market is right now requires a deeper discussion than normal. Let's lay the groundwork with the basics though, beginning with a look at an updated chart of the S&P 500. As you probably already know, the support that the S&P 500 found at the 20-day moving average line - at 1864.50 - on Friday failed to hold the index up today. That by default means we have to move on to plan B. What was plan B? Finding a floor at 1840, which was a former ceiling, but became a floor in late April. In the meantime, the lower 20-day Bollinger band as well as the 50-day moving average line have converged right there, making it one very strong floor. Sure enough, today's low of around 1841 was close enough to that big support level to spark a bounce effort. Take a look. While it would have been nice to see the S&P 500 close a little stronger than it did today, all things considered, I think this is pretty close to a predictable, reliable reversal effort. On the flipside, a close back above the 20-day moving average line would really make this rebound gel, and only a pop back above 1884 would let us rest easy. But still, from and odds-making perspective, I've got a feeling the odds just turned net-bullish again. There's just one problem with the bullish thesis at this point, and I'm willing to be those of you who immerse yourself in the market on a daily basis know what the problem is - the NASDAQ didn't find its logical low the way the S&P 500 did.... or did it? To give credit where it's due, I wouldn't have seen this had I not read this afternoon's edition of the SmallCap Network Elite Opportunity newsletter. In it, John Monroe explains how... well, I'll just insert the snippet and his chart. John writes: At this point, the NASDAQ has every right to move just below the 4,000 level or even as low as roughly 3,926 shown in this secondary daily chart I've included here, before it may find a base and start moving higher again. The 5/8 retracement level from last October's bottom to the recent highs sits just underneath a key pivot point, which I've also pointed to here. It would be no surprise to see that level taken out to the downside at some point, which would likely create a tremendous amount of panic, clean up some significant SSL levels there, reverse its trend and leave a lot of traders and investors behind. Although we could see that level at some point, what is a bit unclear at this point is, how will it get there? I suspect we'll see a fair amount of snapback reversals keeping short sellers honest, as well as continuing to keep the bulls a bit nervous. However, as you can also see in this daily chart the index is literally sitting on a key 3/8 retracement level today, so there is a chance we could simply start moving higher off of this key level here but that remains to be seen. We talk about them every now and then, though we don't discuss them nearly as much as we should. What's that? Fibonacci retracement lines... the 3/8 and 5/8 retracement lines Monroe explained to his readers today. While he went into more detail than I gave you here, his point still stands - today's low of 4052 for the NASDAQ Composite pretty much tagged a key Fibonacci retracement line, and pow! The index stopped its bleeding. Like the S&P 500, it would have been much easier to be bullish here had the NASDAQ reclaimed a little more of what it lost on an intraday basis. Beggars can't be choosers, however. Either way, there's one more reason the NASDAQ may have hit a fairly significant low today. It's the NASDAQ's Volatility Index, the VXN. Simply put, the VXN finally bumped into a major ceiling of its own Monday. That may be a signal that fear here has peaked, and as the VXN eases lower, the composite itself can continue inching higher. It sure makes sense, given everything else that happened today. With all of that being said, the smart thing to do here is continue to wait for just a little more certainty. One decent "up" day would do the trick. It could come as early as Tuesday. By the way, if you really want to get a firm grip on how powerful Fibonacci retracement lines can be to your trading, John Monroe over at the SmallCap Network Elite Opportunity is the best there is at using them. I suspect that's why he's one of the best market-timers I've ever seen. You can learn a ton just by reading what he sees with Fib lines in the EO newsletter. I suggest you use your free two-week trial to the Elite Opportunity service just to see how potent Fibonacci lines can be. Here's how to get that test drive, or cut and paste this link: https://www.smallcapnetwork.com/?vmpd_ckstr[click_track]=Newsletter&vmpd_ckstr_redirect=/pages/SCNEO/v1/ Must-Sees The site's regular contributors hit the ground running this week, with a bunch of their time and attention on mobile gaming stocks. Bryan Murphy pitted King Digital (KING) - of Candy Crush fame - against Zynga (ZNGA), naming a clear winner. If you were looking for something a little off the beaten path within the mobile video game segment of the market, however, Peter Graham digs into three gaming/app stocks you may want to steer clear of until they find a bottom. If you're more of a resource or mining fan, Peter also slices and dices Handeni Gold (HNDI), Graystone Company (GYST), and Horizon Energy (HORI) in "A Mother Lode or Gusher With Small Cap Mining or Energy Stocks HNDI, GYST & HORI?" By the way, speaking of Zynga, if you were or are interested in the gaming stock, the SmallCap Network Elite Opportunity currently owns it as one of its positions. And, I have to say, John Monroe's coverage and perspective on the stock has been way more helpful than most anything I've found in the mainstream media. If you want a serious, unbiased, and holistic look at it (or any of the other stocks in the EO portfolio), that's what you get when you're an Elite Opportunity member. If you want to see the difference for yourself before committing, use the free two-week trial offer to that service. All of the discussions and analysis for each particular stock position is grouped by ticker at the EO website, so you can easily see the kind of ongoing insights you'll get as a member. Learn more about your free trial, or cut and paste this link: https://www.smallcapnetwork.com/?vmpd_ckstr[click_track]=Newsletter&vmpd_ckstr_redirect=/pages/SCNEO/v1/