Major averages took it on the chin yesterday on higher volume as the market looks poised to potentially retest prior lows as it did in 2010 after the flash crash and in 2011 after the Greek debt crisis arose. That said, should the markets calm down and tighten up as they did twice in the second half of 2012 after two 10%+ corrections, they could move higher and approach old highs. Of course, Operation Twist then QE3 were largely responsible for the markets moving higher back in 2012-2013. So as long as the global economy remains troubled and the Fed continues to push for a rate hike, new highs may be a long way off. Currently the indexes remain in a choppy, rising range following the selling climax that occurred in late August. Many leading stocks remain mired in weak positions within their chart patterns, while some have attempted to recover and were able to hold key moving averages despite yesterday’s selling, such as PANW, FB, TSLA, SKX, UA, AMZN, etc. Thus the market may move into a bifurcated phase where some stocks are playable on the long side while others continue to languish and, in some cases, present short-sale targets. If the market is setting up for another leg to the downside, it may take several weeks to develop, and therefore it is difficult for investors to make any firm conclusions aoutside of dealing with the market on a stock-by-stock basis.