Conditionning from the post GE gap down...

It is amazing how people forget, it is cyclical. It takes 20 days to reach to the same euphoria and go into the same fear. Tomorrow will be no different. I think people will sell tomorrow because of the fear of the heights, then I wonder whether they will be able to remember the post GE reaction and kind of buy the close. The speculation is important, if we see the same ISE equity numbers as we have seen the whole week tomorrow as well, just forget it! Otherwise, there is a chance that we can see about half of the post GE like rally. I said half because I think any pause to decline at the trend line and rally will be again widely accepted and speculated as soon as 1400 is breached imho. I think 1407-1412 is a target, but it depends on the close tomorrow. There is support at 1385, then 1370-1375 must hold, the higher the better, but below the TL there is only void sucking down to 1350s. The option picture will turn ST bullish a bit for the expirations, especially if the participants become more defensive and SPX can achieve a 1-1.5% decline. This will be probably a bounce, but then the 38-40 day cycle is an important cycle that comes every 8 wks and it should produce a respectable bounce or rally...

internals are much weaker this time - bears have a chance to start something today whether they take it this week is a tough one due to opex you have to be a criminal to be buying this market at the moment, because any gain can vanish quickly but of course criminals make good money

Rising sectors throught this week's chop are still the same leaders, tech, telecom equip, wireless, semis. They may abandon that financial junk and rotate into leading sectors, anything can happen.