SHORT TERM RALLY?

The market reversed a 300 point drop today and the S&P 500 was able to finish in positive territory. Tomorrow will be an important test to see if there are real buyers out there. As I mentioned last night, I am planning on the possibility that we could get a short term rally to around the 1100 to 1115 area on the S&P 500. Any rally should be a set up for another move down. I still feel the S&P 500 will end up below 1000 soon...possibly the 925 to 950 area. Watch the 1050 area on the S&P 500. If we drop below that area tomorrow, you would want to load up on your put options. Otherwise, wait for the rally to stall and look to get in or add to your current position near that 1100 to 1115 area. This 1050 area is a shorter term Elliott Wave confirmation point. If we drop back below this point tomorrow, it will show that the buyers are still not there and we would want to get aggressive to the downside. If we do rally tomorrow, I don't think it will last very long. I think it would be too risky to try to play any bullish moves...unless you already have some great day trading skills. If you are holding puts, be patient. If anything changes and I see any strong bullish signals, I will make sure I let you know.