Technical Bounce Day 2

The bullish momentum from yesterday's big move is set to push a little more out of the gate this morning. Yesterday I speculated the furthest the market would go intra-day was the 725 area, which is still a natural consolidation point if the market moves up right at the open. I speculate that the 725 area will be an intra-day resistance, but the market will eventually push through and continue this technical bounce.

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

The next intra-day wiggle point will probably be the 730 area. The market was oversold enough that a technical bounce on the daily charts back to the 740 - 750 area in the next couple of days would be reasonable, and overshooting in to the 760-770 area would not be out of the question because of short covering along with bargain buying.

Today, I would prefer the 700 area to hold on any deep pullbacks, and 693 is my drop dead line. If the technical bounce is to carry through with a little momentum, I would really like to see the 705-710 area hold and the market not come all the way back to 700 or lower.

7:58 pm MT: Intra-day Update: The market wiggled for a moment right out of the gate and then ran to the second intra-day resistance level in the 730 area (overshooting a couple of points). It's now at the next pausing point intra day. If the price action gets too frenetic in the next hour then we could have a lengthy mid-day consolidation of the sharp move up.