Poker - Merlin goes day by day and we don't set specific target levels, but rather how OB or OS the rules say we are based on the market internals (price, breadth, and options volume). Right now, our ST RSI is bouncing around the low 20s (clearly OS territory), the Fri low seems to have formed a nice ST "V" bottom, and the bears were not able to take it back there for a retest this AM. The market just endured a pretty brutal week/month and unless oil spikes another 5 bucks or so, there seems to be sellers' fatigue setting in and the market *wants* to go up. Even in the worst of bear markets, ST snapback rallies can be vicious. EOM/EOQ considerations (window dressing and new 401K $$$ coming in) also point to a modest rally. As we enter earnings season, expectations have been so lowered that it won't take much to beat them, and any positive reports will be interpeted by the herd as a reason to jump back in. 1375 would represent a 6.7% recovery from the current level of ~ 1288, but that is certainly doable, unless more bad news surfaces (e.g. more housing woes, the impending collapse of consumer credit, major bank failure, etc., etc.)
