The manic depressive market had another go at it today and left no one disappointed. Up 400, down 200, up whatever, down take your pick...you get the idea. It's kind of like watching one of those paint can shaking machines in Lowes....ugaugaugaugaugaugaugaugauga (that's the best I could come up with). Any how, tomorrow is going to be an interesting day. You see, an interesting pattern is forming in the S&P and DOW. It's an INVERSE head & shoulders. It will pretty much be triggered if todays highs are broken, and the target price is way up there. The S&P would count up to 1200. That just happens to be the area where the option traders need the S&P to move to before Fridays expiration to take them off the hook. So...if the S&P breaks above todays highs, the market may blast off again between Wednesday and Thursday towards that 1200 level. I know it sounds crazy, but right now crazy things are to be expected. If that unfolds and 1200 is hit, it would be a great short. The other potential is for the pattern to fail and the market to begin a more traditional re-test of the lows of last Friday. An ideal setup would be a re-test that undercuts the low of 840 and moves to the 780-790 area on better internals than last Friday. That would be an absolute gift to go long. More than likely if the inverse H&S pattern fails and the re-test comes, the level it reaches may not be much under 900, so be ready. My preferred pattern in all of this would be for a re-test to 875 or so, then a multi-month move up that meanders it's way to 1200. I believe that would setup the last massive move down perfectly. This a dangerous market we've got here. You've got to be careful and at the same time very open minded about what may be next.