The 900 area of the S&P is of crucial importance here. So far the market has jogged around it, and it may take a 10 day average over 900 to get follow through, but in any case this is the battlefield for market direction over the next few months.
In looking back through cycle data one could make the case that October 27th at S&P 850 was really the market bottom and the move down to S&P 740 on November 20th was just a panic cleanout.
No change in positions for us, we continue to look for leadership to continue to move toward precious metals and by extension eventually the commodity and oil markets.
8:15 AM CST