As I sit here this morning, I can’t help but think about what will happen to the market next week.
What the bulls need:
They desperately need Bernanke to be re-appointed. Alternates are Kohn (older than dirt) Summers (elitist that would tell Jim Bunning to f**k off) Krugman (hates banks) Volker (nah).
They need the 1080-1090 level to hold.
They need Obama NOT to talk tax increases at the State of the Union. (He will talk tax increases)
An Apple earning blowout would help, but is certainly not the answer.
China tightening needs to get off the front page and for their market to catch a bounce.
They need Asia not to dump on us-it already is.
What the bears need:
Bernanke NOT to be re-appointed.
The 1080-1090 needs to be broken with more big volume.
The financials to collapse further with more big volume, support at 13.80-14.00 on XLF.
Obama to reiterate his hard stance on the financials and talk tax increases at the State of the Union.
The Geithner/Paulson inquisition starts this week, a smoking gun would kill this market.
*** Of course there are more moving parts, these are just some key points. Sentiment has changed and the bears are in charge, a violent reversal higher seems very unlikely, although any “good” news would allow a massive short covering rally to kick in.
GO JETS!!!!!!!!!!!