Where's the Resistance?

I tweeted earlier that I would be looking to short the market tomorrow watching the 1075 level closely on the S&P 500 chart. The chart here reaffirms such a thought as the range support is roughly 1074.70 area. A break of this and we move back toward the 1065 unwinding the strong rally that we had today. Also, that would confirm to participants that "NO" earnings are good earnings as the market was drilled on Intel's solid numbers, drilled earlier today on IBMs and if we go down tomorrow, sold on Apple's gangbuster earnings.

Perhaps though earnings are not the story and it is all about the continued bearish sentiment that I mentioned in the last note this morning. Perhaps this market's catalyst has nothing to do with earnings, the Euro or the Fed though the rumor of them pulling back interest on cash seems to be a very valid action to be honest - though at the same time the amount of money that would probably enter the system would be too much for the Fed to pull back (but that is another story). Bottomline, going back to the chart, the S&P needs follow through tomorrow for this move to progress - otherwise, the selling could be quick and efficient (ie high frequency) tomorrow.

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