The markets saw broad selling pushing the Dow Jones Industrial Average down another 207 points to the bottom of the correction range. From a technical standpoint the DJIA the down broke through support at 13,041; but is still above the numerically significant 13,000 level.

The NYSE had volume of 3.8 billion shares with 440 shares advancing while 2,924 declined for a loss of 174.59 points to close at 9,254.27. On the NASDAQ, 2 billion shares traded, 797 advanced and 2,234 declined for a loss of 43.12 to 2,499.12.

With all the market volatility, options continued to be very active. In options there were 7.6 million puts and 6.2 million calls traded for a put/call open interest ratio of 1.21. Coca-Cola Co. (NYSE: KO) saw heavy volume on the January 45 calls (KOAI) with over 44,000 options trading. General Motors (NYSE: GM) tallied volume on the August 30 calls (GMHF) with over 31,000 options trading. American Express (NYSE: AXP) saw heavy volume on the January 60 calls (AXPAL) with over 28,000 options trading. Home Depot (NYSE: HD) moved heavy volume on the August 45 puts (HDTI) with over 90,000 options trading.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

One of the BloggingStocks editors recently instant messaged me and said, "You know, I think technical analysis is bull." I've heard this opinion very frequently, and I've even held this opinion in the past. But from watching stocks for several years I've seen certain price moves that seem to occur again and again. Sure enough, these movements are some of the most fundamental elements of technical analysis; for example, support, resistance, uptrend, etc. I've seen many people who don't know any technical analysis but reference a stock's breakout on its "graph" -- just from watching stocks trade, they have realized this is often a sign of future profits to come.

As I began studying technical analysis more frequently, I learned more about the skill -- moving averages, indicators, oscillators, and so on. Many of these tools, in my opinion, do in fact have predictive value in the stock market. More importantly, these tools allow traders to more effectively and systematically (therefore, less emotionally) manage their money.

All this being said, I think the editor was right in one regard -- I have a lot of trouble believing in patterns (e.g., "Head and Shoulders") because I think that many of these are way too objective when it comes to trading. I also find that they are harder to explain than many other tenets of technical analysis, such as support and resistance.

I've been on all sides of the technical analysis argument -- extraordinarily against, emotionally for, and everything in between. As it stands now, I feel like it's just another tool in the toolbox for a trader and there's no reason not to consider it.

In a move that is down-right American, Sears stores (NYSE: SHLD) are going the extra mile for our men and women in the armed forces. It was reported to me that not only is Sears gladly meeting the legal requirements to hold open and available the jobs temporarily vacated by individuals who are called into active military service but they are proud to go above and beyond the call of duty. Sears is voluntarily paying the difference in salary and maintaining all benefits including medical insurance and bonus programs for a period of up to two years for their reservist employees who are called into service. I myself will happily drive ten miles beyond a Wal-Mart store (NYSE: WMT) and joyfully risk paying slightly higher prices to deal with a company that treats my soldiers like that.