Fannie Mae (FNM) is one of the more controversial stocks in the market right now. Keep close watch of the triangle that is unfolding in the stock. A break in either direction could have a big influence on the broader market.

The trend in FNM is lower, so my guess is that the stock will eventually breakdown from the triangle. If it does, it should cause some selling in the broader financial sector which, in turn, should cause some worries to slip back into the broader market.

Alternatively, a breakout, to the upside, in FNM might be a catalyst to firm up the financial sector which, in turn, will be cause for rejoice in the broader market.

Either way, keep tabs on the triangle in FNM. It should prove actionable in the coming days or weeks.

Watch the 1310 level in the S&P 500 ($SPX) today. A breakdown below 1310 will confirm the recent rollover in the index and most likely lead to at least a retest of the January lows.

The January low is at 1270, so the SPX could have at least another 40 points of downside. A successful retest could lead to a great buying opportunity. Alternatively, a failure at 1270 and a continuation of the bear market could ultimately take the market much lower.

Either way, we'll observe the price action when the SPX gets there. In the meantime, observe how the SPX trades near 1310 today.

The broader market, as defined by the S&P 500 ($SPX), is poised for a big breakout. Whether it's up or down remains to be seen.

The triangle pattern in the S&P 500, which we first highlighted a few days ago, almost broke to the upside yesterday. But the big sell-off put the market right back down to the lower-end of the recent range.

A level to watch early today is the 1335 mark. A breakdown below 1335 might start the process of a bigger breakdown from the triangle. Confirmation of a breakdown from the triangle will come at 1315, so there are two potential action points to be monitoring.

Use the S&P, and its price action, as a proxy for the stocks you're watching. Tighten up stops on long positions and look to get short weak stocks if the S&P breaks down today.

A few bearish ideas for you to watch:

Safeway Stores - SWY
Career Education - CECO
ITT Education - ESI
Nutrisystem - NTRI
Raymond James - RJF
IAC/Interactive - IACI
Boyd Gaming - BYD
Consolidate Edison - ED
Progress Energy- PGN

The S&P 500 ($SPX) has traded in a pattern of higher lows and lower highs since mid-January. The price action is, by definition, a triangle. This particular triangle has a bearish bias to it.

The probabilities favor a break to the downside because of the existing downward trend in the market. But you might trade the pattern either way.

The apex of the triangle is around 1350. If the $SPX breaks down, target 1280 in the short-term and see how the market behaves from there. If the $SPX holds, it might be viewed as a successful re-test, paving the way to a sustainable rally. Alternatively, a breakout to the upside will quickly encounter resistance at 1400. After that, 1425 to 1450 might serve as a short-term bullish target. But be quick to take profits in bullish positions.

Use the $SPX as an indicator for positions your trading among individual stocks. Quite simply, if the $SPX breaks down look to get aggressive with some of the bearish set-ups like the bear flag in Fannie Mae (FNM). On the other hand, if the $SPX breaks out to the upside look to get aggressive with some of the strongest stocks in this market like the DB Commodities Index Fund (DBC) and Cleveland Cliffs (CLF).

There's always a bull market somewhere. We've found several in energy, agriculture, and retail.

Origin Agritech (SEED) - Bullish Triangle

SEED is a small cap that's been extremely volatile. The ups and downs in the stock have formed a triangle over the last five months. Look for a break above $9 to potentially lead to a bigger breakout from the triangle.

Potash (POT) - Bullish Flag

We've been bullish on POT for years and haven't wavered one bit. This has been one money making stock. It's breaking out above $150 today, which has been horizontal resistance for the past eight weeks.

Chesapeake Energy (CHK) - Bullish Flag

CHK has been consolidating for the last four months. It looks like the stock is ready to run higher again. CHK could make it to $50 in the short-term.

Urban Outfitters (URBN) - Bullish Flag

Not all retail stocks are getting hammered in this bear market. URBN is thriving, hitting a new 52-week high today. Look for previous resistance at $29 to serve as support.