A Much More Satisfied Bear

Yesterday went a long way to alleviating the concern I was feeling. Let's see what today brings.

If 1230 is in the cards, then yesterday's 1102.95 should not be messed with. That number represented 23.6% retracement of the move from the 9/27 high of 1195.86 to yesterday's 1074.77 bottom.

Early on yesterday, I noted on Twitter that an inability to hold above the 1103 area would be problematic. It was. The market had a deep pullback from that spot -- falling over 23 S&P points.

Only then did the market gather the steam it needed to vault that point and blow it away.

I mention this to draw attention to the next 23.6% Fib zone -- 1144. Failure there would immediately call into question whether 1230 would be hit. The character of this market since May has met with much resistance at these zones, and they have provided early warning.

If the c-wave scenario to 1230 (or higher) is in play, we should be seeing a strong, direct thrust higher -- an impulse. So be watchful for a distinct change of tone in the market. A quick fizzle would suggest the opposite: a strong, direct thrust below 1000.