I will shortly become more short term bullish (for a bounce) as we've broken the support from June. Now that this is broken a lot of people expecting support to hold here, will throw in the towel. Yearly intraday low (March 2011) could beckon.
We have ISM Services tomorrow (ADP employment in the premarket) and then the employment report Friday. Expectations have been lowered significantly so short of a total bomb (which is plausible), the bar is very low to get a 'better than expected' figure. That might be a catalyst for a snapback rally.
I still would like to see some more panic among the momo leaders - sometimes you get that, and sometimes you don't before the market clears. If we did it would be incrementally positive for a bounce. As would a gap down tomorrow ....
Fun fact - the S&P 500 is now down for the year.