It appears to me that the market wants to test the 8/24/2015 lows. After the May 2010 flash crash the market tested the lows three times making successive lower lows. Markets don't exactly repeat but a move similar to this could easily occur. The longer term question is what happens then? There are enough issues in the world that investors could easily take a negative view of the economic outlook. Up until earlier this year investors shrugged off negative news, not so much now.

Watch lists are updated. AAPL is a classic example of a short position which I took on Friday morning. AAPL rallied into the 50-day and then reversed to close below it. I try to get into positions like this as close as possible to the key resistance area I am trading. I only short heavily traded stocks. Thin positions can jump too quickly in volatile conditions. I also try to stick to stocks that were leaders in the prior run up. I call AAPL a failed late stage base failure failing its last breakout on 4/28/2015. Subsequent to this it tried to form a double bottom base but couldn't quite breakout and instead gapped down below the 50-day. Since then AAPL has tried to rally and perhaps has stalled at a key resistance line. AAPL topped 5 months ago, it is typical for proper short set ups to occur many months after a top. The reason for this as we need to clear the bargain hunters from running the stock back up.