Zero edge here imo. "FV" maybe 820 ish at best. Imo the most important thing people will have at the forefront of their minds is 800 SPX, and then whether the low of approximately 742 holds. I don't know what you all think about yesterday. To me, as I mentioned above, it felt like 2% of the down move was redemption. It had all the footprints of that animal. Therefore, on that argument alone (granted, not much of an argument) we are at least 2% oversold in the short term.
Markets very mixed and confused pre-market. Take a look at NQ vs ES. NQ is green with ES red at the time of this writing. I attribute NQ green to AAPL. Normally, NQ green vs ES red is not to be bet against when you don't understand why. In this case it is obvious. "FV" at best 810.
"FV" approximately 800. GE earnings holding rest of market up pre-market, otherwise I think 800 goes. It may go anyway. Caution. No edge as I write this, so why gamble?
"FV" approximately 825. Market may be grossly undervalued if Obama administration decides to stimulate by cutting taxes instead of stimulating the spending end. It is debatable, but they are looking into it from what I hear.
I am beginning to believe that we are finally seeing bottoming action. If it were not for C and BAC, the recent action in SIFs, together with the fact that as I write this ES and YM has gone red, but NQ is holding and wants higher, leads me to feel optimistic at first approximation about the market overall. This doesn't mean go long here. It means I believe we are farther along in the process of the final flushing than at least I thought we were. "Bad bank/Good bank" may be the final nail in coffin to the downtrend.