All eyes are on the Federal Reserve minutes that we'll see on Wednesday.
In the Monday morning session, equities are quietly trading in a lower range after suffering a selloff last week. The September S&P e-mini futures reached a low of 1,649 Sunday night, and are hugging that level early on Monday. We are still eyeing 1,347.50 as a level of solid support and will look to buy a fresh new low at that level. Still, if that new price is reached, buyers will want to see the market bounce off it, and not just sit there.
(Read more: Here's where the correction will stop)
As I mentioned, this week's biggest economic news will come on Wednesday, when we will get the minutes from the FOMC meeting that was held at the end of July. Traders will be looking to these notes in hopes of getting a better idea of what to expect from September's meeting.
The other thing that will be critical for equities is Treasurys. Treasury prices sold off on Friday to new swing lows, and the rising yields have likely put some pressure on equities.
(Read more: Three reasons the market is peaking: Doug Kass)
So what are the key levels I'm watching?
A close below 1,647 will likely send this market another 20 points lower. If this major support holds, we expect a consolidation back up to the major 1,666 level. But the market may stay in check in the newly defined range for the next couple of weeks. This will be an amazing opportunity for day traders to play the levels.