Option Investor
Update
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The bulls are firmly in control this morning. The new FASB rule allowing mark-to-make-believe has clearly fixed all that ails us. Sorry if I seem a little skeptical about that but I'm not about to get in the way of a little irrational exuberance as the bulls stampede to get long the market (and shorts run for cover). It looks like a push up to the downtrend line from November, currently near 848, is a foregone conclusion.

But that would be a good place for at least a rest. If we get a choppy sideways/down kind of consolidation for the rest of the day, shown in pink on the 60-min chart, it would be bullish for the larger pattern to the upside. However, if the market starts back down in earnest it could mark the high for the rally leg, to be followed by a strong decline as either part of a larger pullback pattern or the start of something bigger to the downside. A little caution is warranted for both sides as SPX nears the 850 level.

SPX 60-min chart:
[Image 1]

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