Within 30 minutes of the opening, fairly heavy and consistent selling entered the market and, after a mid-morning rally, resumed in full force -- driving the Nasdaq to the worst performance of the major averages, off 1.92%.

This must be a disappointment to the bulls, since many have been touting the technology sector as the backbone of a recovery. It was large-cap techs that failed yesterday, shifting momentum back to the bears with a pick-up in volume and negative breadth on the Nasdaq.

This week should prove to be a test for the bulls for at least three reasons:

1. The major averages have entered the first zone of resistance -- a minor one that if not overcome will be interpreted as a sign of weakness.

2. This week is loaded with important economic reports that will no doubt show that the economy has not yet turned the corner. But if the market can rally in the face of poor economics, this would be a positive.

3. The internal indicators, including the Moving Average Convergence/Divergence (MACD) and stochastic, are approaching overbought levels, and with reversals recorded yesterday for both the Dow and the S&P, the bulls must move quickly to break the reversals and get back on course.

Traders should stand aside until the market tells us whether it can overcome selling and continue last week's rally -- or head lower. And heading lower means going for a full test of the March low at S&P 667.

However, one play to consider is the UltraShort Technology ProShares (NYSE: REW). This bear market ETF reversed a near-term correction and the stochastic is oversold, setting up a good buying window, which is why it is my Trade of the Day.

Sam Collins is a contributor to OptionsZone.com.