This time, I don't think you can buy the dip down to 1780. It worked last week, and worked before that, but the energy of the selloff is different. More pernicious. Plus, with the December taper talks getting traders more nervous for next week, and the heavy IPO and secondary calendar, I don't see a quick recovery.
Also, we are unable to gap up off a strong selloff yesterday, which is different price action than what we're used to seeing over the past 2 months.
Contrary to prior action, I actually expect a sustained selloff this week culminating in a weak Friday, something that would catch a lot of longs off guard ahead of the FOMC next week. Probably the best stock to buy on the dip that I expect to continue till Friday is TWTR. Expecting TWTR to test 55 sometime next week.
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