The ever elusive and rare 'quadruple bottom' [tongue in cheek] at S&P 1040 is holding this morning as premarket magic works overtime. I was hoping for a washout morning (i.e. ugly action) to create a tradeable long side event, but it appears it won't be that easy. While I was calling for a rally in the next 48 hours I would have preferred it came with buyers giving up after their support was broken. So we'll see what happens after the first 10 minutes today. Since the stock market has no memory from day to day anymore, and a -3% 90% day can be followed by the exact opposite I won't give much leeway to the puts I added yesterday. Obviously the market is hanging by its fingernails to the lower of the 2 ranges we have outlined: 1040 to 1070. If bulls feel comfortable with this morning's proceeding the short term flipping crowd can certainly pull off a 10, 20, 30 S&P point rally since yesterday can be forgotten in an instant. Unless/until 1040 is broken it is hard to press shorts for now... with the premarket action acting completely independent of yesterday's whoosh down, we remain stuck in the market without memory from day to day.
Intermediate term, everything remains bearish - but nothing in a straight line.