The S&P continued it's flirtation with 900 today breaking both above and below before settling oh so close at 899 and change to end the day. Volume contracted slightly. That's a negative.

It could be the market's waiting on final word regarding the "Big Three bailout". We'll have to watch how stocks react to that news if any comes. There's been a tendency to "sell the news" in this market at times. If it doesn't happen that way it'll be another clue that the market's heading higher.

The markets ability to hold it's ground here after being extremely overbought can only be interpreted as bullish. If it breaks higher I have my sights set on 1008 or so. I'm not going to get into why tonight, just know that's one of my targets. There are a couple of bumps to clear along the way, but nothing too serious. 

But we must be careful. We've seen many unprecedented moves in the markets this year. If for some reason they do begin to plunge, and if 820 doesn't hold, I'd look to exit. I'd probably then re-enter at 740-750 if the opportunity presented itself in case we were simply getting a retest of the November low. I doubt this will happen, but be ready just in case. 

Also, I'm looking at the possibility of a pullback to 850 or so as the final washout of bulls before launching a blistering run up to devour the bears. So if the market heads down there tomorrow don't panic. That would actually help create some badly needed oversold readings for the market to feed off of.