The recent selling took place on stronger momentum than in the decline from October into November; that will make it more difficult for the market to pivot quickly off lows.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for January 22.

This week John Mauldin looks at jobless claims, credit default swaps, and continued weakness in the economy.

Mike Paulenoff's momentum work indicates that the streetTRACKS Gold Shares (GLD) still has unfinished business to the downside prior to the completion of the correction that started at the January 15 high of 90.34.

The fight between the inflation and deflation is beginning to resemble the Corrida de Toros we saw in Madrid . That is to say, it does not look like a battle between equal and opposite opponents. It almost looks like the fix is in.

The BOC will likely follow the US Federal Reserve’s lead and make monetary policy more accommodative, which may spark major volatility in the nation’s bond, FX, and equity markets.

While the market experienced numerous corrections off support levels, not one of them managed to gain the upper hand and take over the momentum from the bears.

If we are right, that stocks are in a bear market, the wise reader will stop worrying about making money and begin to fret about keeping it. He will wish he had befriended gold when the price was around $300, or $500. He will think twice about taking it in at $900. He will think even a third time on the day after gold goes down $20, as it did yesterday.

Mike Paulenoff takes a closer look at the near-term chart structure of GLD and finds it is in the midst of an initial correction of its advance off of the December breakout point.

If UK retail sales data proves to be better than expected, the news could lead Cable to trek higher. Moreover, with aggressive rate cuts by the Bank of England already priced into GBP/USD, the declines may be overdone and the pair could respond more severely to slightly bullish economic figures.