The emotional momentum of last week has faded some, however the market held up nicely in the face of additional bad news this week. From my perspective, that’s a positive sign.
I expect a bunch of smaller traders to short the 1400 level into Tuesday’s Fed meeting. It seems like a safe trade. So, while a "correction" downward wouldn’t surprise me here; I am not bearish. In fact, I think a move above that level would trigger a rash of buying (both organic and short-covering) … and is thus more likely.