The last few years I've been coaching my daughters softball teams. We've had some pretty good success the last two years as we won the league championship each year.

Before each game, right before I send my team out for battle, I gather them in a circle and ask them one question....what time is it?
"GO TIME" they scream as they head out. They believe what I taught them, that sometimes it matters and sometimes you have to focus and be at your best and ready to perform. Those times are "Go Time" on our teams.

If I was coaching these markets I most certainly would ask the same question tomorrow as they open because it is definitely go time. If these markets can't defend the 788 level and immediately respond with the most sustained rally  we've seen this year, well........then they'll lose the game and probably much more.

You should know by now that 788 on the S&P represents the 50% retracement of the entire market value from the top at 1576. 50% is an important number historically in bear markets. In 1929 the market dropped 50% into the November 1929 low. The 2000-02 bear market erased 50% of the S&P's value. In fact that level was powerful enough to reverse a head and shoulders pattern on the S&P that counted much lower catching many bears by surprise. You get the picture. It's an important number, and it's outside knocking on the door tonight.

As a result, feel free to take a shot on the long side on any move below 800. Place a stop anywhere below 750 that you're comfortable with. If 788 fails you should be aware that 768 or so is the 2002 low. This may provide some support as well.

Does the market know what time it is? We're about to find out.