MARKET RALLY?

It is odd for me to call for a possible market rally when I have been so bearish over the last few weeks, but the price action over the last few days may give the bulls reason to charge forward. The last two trading days (Thursday and Friday), the market gapped up then sold off near the end of the day. That price action is usually considered bearish, but the fact that the market hasn't sold of in any meaningful way gives the bulls reason to believe the bears aren't strong enough yet to push the market down. Monday will be key. If we don't sell off (100 points or more on the DOW or 10 points or more on the S&P 500) by the end of the trading day on Monday, I would bet that we will end up going higher. This would also be the case for the BA trade. It needs to start falling soon or it increases the probability that it will go higher. The bears may be gaining strength, but they might have to wait a bit longer. The market may trend a bit sideways for the next two weeks since Q1 earnings come out around the second week of April. I don't see much of a catalyst in the market (bullish or bearish) until then. This could set up some nice credit or debit spread trades over the next few weeks (for those that have had Course 2).