Dan the SPY will have to break and hold that 142 level, and we need to see the nasdaq confirm a reversal... today was very weak with a number of attempts with big volume to move the market lower after an early failure to move singificantly higher..
mutual funds are record invested, the consensus was overtly bullish and long, yen carry has a number of leveraged bets in US markets... is there anyone out there to buy? (besides the plunge protection team)
Technical support was anhilated, market pyschology was shaken and there are a number of factors that could draw more liquidity out of the US
Honestly, I'll be suprised if we don't see another big sell off tomorrow...today was simply a breather, an attempt to draw out some shorts and bring buyers in...if they dont bounce it no-one will buy and the bottom will fall out again
like i said earlier, ill continue to add to the S&P shorts (I may have been the only 'idiot' shorting the market for the last 3 months anyway) as the market bounces and fails...
but if they can get the market over yesterdays highs and hold it who knows... Ill stay short and w/ a negative bias until the market says otherwise
