Thus far over eager bulls received a big lump in their stocking with a mischievous reversal after the traditional morning gap up.* The volatility and random action makes this market far too hard to bother with at this moment. Speaking of volatility I am blown away as I look at pricing for SPY options in June both calls and puts - very very expensive, which tells me people are a bit bewildered and unsure.
One thing I forgot to note this morning was S&P 1150 was a key level; and for any rally to get to 1165ish+ that would be the key pivot point. (this was the January 2010 highs we have been speaking of the past 2-3 weeks, and the level that unleashed hell on the market once it broke a week ago Thursday) Looks like the intraday high thus far of 1148.66 telegraphed that resistance.
*markets should only be open in premarket and not trade after 9:30 AM - if so, we could be at Dow 40,000. (tongue firmly in cheek)