Reacting To The News, Or The Market

This morning the big news is earnings by Apple, IBM, and Goldman Sachs. China has raised rates. Housing starts are up. Housing permits are down. But I'm not yet seeing anything that makes me commit to either side; we haven't broken down in the S&P. I want to see the cash index below yesterday's low for starters. Then I want to see a convincing break -- a smash -- through 1167.12. Until then, I have my eyes on the 200 week moving average at 1196, and I suspect the large players do too.