An interesting spot here, since we have slightly different stories in S&P 500 v NASDAQ. Recall last week, S&P 1150 was a key level - this represented January 2010 highs. Once that level was broken, all heck broke loose Thursday. In stand alone action, as long as the S&P 500 holds 1150 things should be ok, especially since (despite yesterday's gap up open) there is no gap to fill on its chart. So far so good today.
Of course, as noted yesterday it is difficult to build a bevy of intermediate positions until the 20 and 50 day moving averages are cleared... and one would expect some sort of retest of some sort of low (not sure which one due to Thursday's actions).
The NASDAQ is more problematic as its January highs were 2330s, which just so happens to be the bottom end of the gap created yesterday in its chart. So this is calling out for a fill. Similar to S&P 500 it will be difficult to feel security in any intermediate term positions until a move over the low 2400s.
So we have 2 stories that on one level are similar and on the other have a variance.
Hence a lot of sitting on hands for now since these type of areas are more useful for those whose timeframe is hours. All I did yesterday was replenish some long exposure lost Friday to get back from a 10%ish exposure to 15% exposure; still extremely low.