What to look for on Monday's trading based on some expert opinions I've read.
If S&P drops below 791 at any time on Monday, then it's likely game over for bulls and a market correction is in place. If S&P rises on Monday but the high is lower than 833, then it’s likely game over again for bulls.
If S&P drops on Monday but the low is higher than 791, then it’s likely game over for bears and a rally will likely continue as long as the S&P is up more than 60 points within 2 days. So it looks like the bears have more of an upper hand as up 60 points for S&P within 2 days should prove the more difficult task, albiet not impossible.
Another thing to look for is the mark-to-market announcement likely to be made between April 2 and April 9, more likely closer to April 9. If the annonucement is favorable to the banks, then this will be a game changer and the market could rally strong for a week to the point of exhaustion from its current extreme overbought state. A favorable MTM announcement could take the S&P to 900.
10:30 AM EST UPDATE:
All indicators have turned bearish except the BPSPX, which we won't have data until after market close. The S&P just broke down below 790, the VIX spiked up. This appears to be a good entry point for shorting.
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