What People Do Versus What People Say

Same plan as Friday: I still see the S&P heading to 1380-1400.  I still see that level as a sell level.  If correct, it will get interesting.  How it gets there could turn out to be interesting, too.

In that corporate earnings start reporting today, I'll be doing my best not to listen.  I'd rather watch what people do rather than what they say.  Last Thursday, while most people sounded bearish they acted bullish enough to push 89.8% of the S&P above the 20-day MA.

Friday was a correction of that bullishness.  In fact, I would not want to see any more of a correction.  I was using 1334.40 as a hard stop.  It still stands, but I'd rather see the market confirm my views by not getting beneath Friday's lows.  The correction was a little impulsive for my tastes.

But as I said above, how we get to 1380-1400 could be interesting.  I'm probably overlooking a few different scenarios for the structure of the S&P at this juncture, but as ever I'll try to keep it as simple as possible, because in the words of Aristotle: "Nature operates in the shortest way possible."