With the exception of not bottoming in the first hour of trading, the market did almost exactly what I described last night. I mentioned a surprise might be in store and the market delivered. Were you surprised? I've got to say that I wasn't, and you shouldn't have been either....IF you were paying attention.

No one believes this rally has legs, especially Jim Cramer of Mad Money. That means to me that it probably does. Cramer is almost always wrong. This market needs to retrace some of the nearly 50% decline from the top, burn off the oversold conditions and get ready for act two. I think it started in earnest today.

The target for a rebound carries as high as 1200 on the S&P. I know that's right because I heard it from everyone....which makes me believe it's probably wrong. This market continues to make fools of most traders. Today it stopped out all of those longs just under 840, then spent the rest of the day running shorts through the meat grinder as it went the other way.

Tomorrow shouldn't see to much of a give back if this is "it", but expecting this market to act rationally may be asking too much. But for me, tonight, from what I see the re-test is complete. If you're long, hold on. If you're still short, I'd exit on any weakness.  I'll discuss potential targets later.