A Big Bazooka Without Ammo

Yesterday's plan seems correct so far. No change.

Below 1243.35 would be the first indication to me that the S&P is serious. Below 1203.67 would just about seal the deal. Unless these targets are taken out, I'm going to give it a little leeway to the upside. In fact, I'm looking at the 1292.66 high from October. It could be exceeded if the S&P remains above 1203.67.

If 1292.66 gets exceeded, 1300 could be a psychological, round-number target. Also, there are Fib extension targets of 1283 (62%), 1294 (78.6%), and 1308 (100%).

There seems to be a persistent news bid under the market ahead of the Euro Zone summit. I'm looking for a "buy the rumor, sell the news" event. The only thing that concerns me is that many others are too.

FT reported that Ireland is seeking better terms on its bailout. No one seems to be concerned that this will quickly spread to Portugal, Spain, and anyone else that needs help. Yes, that could mean France and Italy, too. There is no way this can succeed. There is not enough money.

Expect a big bazooka. Without ammo.