Bailout Announcement Gets Pushed Back

The Bailout Bulls will have to wait another day.....The announcement (and we're all holding our breath) has been pushed back to Tuesday. The Bailout Bulls aren't too happy about the announcement about the announcement, so pre-market futures took a bit of a dip. Most of the calls you and I locked down on Friday we can now get cheaper this morning.....as usual.....

The Double-Bottom type of pattern that the market (SPX) has been forming is pushing right at the trough line. I won't be surprised if the wiggle we get from the "disappointment" is short-lived and the ever enthusiastic (desperate) Bailout Bulls break out above the short term resistance.

Here is a chart of the SPX:
(click on image to enlarge)

A breakout above 875 would open the door for a move to 900 - 918. A false positive would be a drop back below 850, which would be my last drop dead stop for any calls. As always, we shall see.....

8:30 am MT: Intra-day Update: This market looks like it's headed towards consolidation for the next few hours. The leadership is coming primarily from Agriculture/Chemical and Energy and those areas look a bit toppy. The market will need some new leadership to break the troughline of the Double-Bottom, even if it means short covering in Financials.

Watch the 60m chart on the SPX. A break above 871 would open the way for a move to 878 and a push for a breakout.

8:50 am MT: Intra-day Update: The SPX did push through 871 and looks headed towards 878. We'll see if the market can build off of this. Things look a bit extended on the 60m charts, so I'm not looking for more than 878 at best right now before the market needs to gather itself. A powerful breakout would be nice, so I'm open to the possibility, but I'm going to be a little cautious intra-day (not so much on the daily charts) at the 878 area.

9:45 am MT: Intra-day Update: Just as I speculated, the market popped a bit and got too toppy and came right back in to the consolidation on the 60m charts.