That swift sell off I mentioned as a near term possibility last night showed up rather quickly. Once 920 was broken and retested as resistance from below the days fate was sealed. That 920 level is one that EVERYONE is watching and trading off of. It really wasn't a complicated move, nor did it change anything. The bulls are still in control.

Volume declined from yesterday as I would expect if this was just a counter trend move. Everything else I look at also suggests that's all it is...at least so far. Another 30 points straight down could complicate things though.

If you go back and read my 12-29 entry I mentioned that the setups to watch, 850 on the bottom and 920 on the top, were a little too obvious and that the markets may make things difficult with a false breakout. The action since then is kind of what that would look like, a break above 920 and now a failure.  Although I don't THINK that's what is occurring, I can't dismiss it.

So what happens the rest of the week will be critical. The market should tell us if it's going to throw in the towel now, or wait until later, perhaps even the spring. You really need to listen to our interview we'll do Friday as Tim Wood and I will have quite a bit to say about those two distinctly different alternatives.