Watching the tape today, I find it very interesting any attempt at buying on the dips is failing. VIX is slowly moving up approaching 43 now. This is a clear bounce off of the lower trend line and a temporary bearish indicator. If it can close at or near 46 today or tomorrow, I believe that will indicate the bear market rally is truly taking a breather or could even be over.
Earnings are going to be key. I can't imagine a wave of upside surprises so I think the VIX is above its lower trend line to stay for awhile.
The uptick rule decision is coming. Its' the last bullet in the chamber. I can see them changing rules on short trade delivery but not on eliminating short trades. Eliminating short trades to any degree would cause a bigger problem for brokerage institutions than they already have due to lost revenue in trades.