I want to see the SPX retest the July low 1010 and rebound before adding any long position.

The S&P 500 Index was 8.1 points lower, closed at 1047.22 and breaching support at 1050 for the first time since June. Stocks turned lower Thursday despite a bigger-than-expected drop in weekly jobless claims. The downside reversal also erased Wednesday's gains. It is the fifth loss in six sessions. The final drop not only offset the prior session's gain but left stocks to settle at a new monthly low.

Economic gloom continued to hang over investors. When things are as bad as they are, any news like today's jobs data showing a slight improvement helps. But we're still in a mess, the macro situation is deteriorating in the U.S. and the Fed is not ready to take the next step, well, actually, there is not too much Fed can do to rejuvenate the economy at the current situation. In economic sense, we call it economic cycle, and we call it market cycle in stock market. Next cycle will exist only if we could find the bottom and rebound. And I think it's going to continue to be a rocky road for the market until we see some gradual momentum.

Tomorrow we have second-quarter gross domestic product due early morning. GDP, the broadest gauge of economic activity, is expected to show the economy grew much less than previously estimated. Economists expect the government to revise second-quarter GDP to 1.4%, If it comes in as expected, we may not see much movement since we seem to already be pricing that in, but if you have a number below 1%, the market could get really ugly.

Tomorrow may be the wash out day if the GDP report is a ugly one. I want to see the SPX retest the July low 1010 and rebound before adding any long position. Couple days ago I posted the projection of this sell off. We have reached 1063, 1041, the next targets will be 1018, 1004, 982, 945. Consider the market's short term oversold, I believe the market will bounce at support 1018 or 1004 at a extreme sell off mode. I will watch the 5, 15, 60 minutes charts, if market rebound at these support levels, don't miss this day trading opportunity.