Strong Consolidation

"When a company reports higher earnings for its first quarter (over its previous year's first quarter), chances are almost five to one it will also have increased earnings in its second quarter."

Figure out what trigger you would like to see as the "catalyst" but the market finally took a strong consolidation, allowed some profit taking, and through 2.50 p.m. had held above 11,050. A move to 10,928-10,890 would signify potentially more downside pressure to our lower Dow projection bottoms. If, however, the market is able to maintain around 11,000 we could see a regular upside.

Fear of Greek debt, of the Euro, of the same economies collapsing on debt, are now the fear of the EU. All of us knew it was there all this time, just as we all know Goldman Sachs and all of them are guilty, and that in the end, little is likely to change until the actual demise of Wall Street.

The FEDS announcement (FOMC) is widely expected to hold short-term interest rates in historic low range. The focus will be on whether "extended period" stays in the statement

Bernanke concludes with. Any lessening of "low rates forever" could trigger market movement. There is also whipsaw before FOMC announcements, with typical build up to the bias in purchases 2 hours or so before the FOMC announces. There is also typically strong whipsaw from 3.00 to 4.15 p.m EST while the option market is open.
Visa posts results after the market closes.

What the analysts say:


S&P DOWNGRADES GREEK DEBT TO JUNK AND CAUSES PROFIT-TAKING IN STOCKS AND BUYING OF US BONDS -- GOLD BOUNCES AGAINST DOLLAR AND REACHES RECORD AGAINST THE EURO -- 20% JUMP IN THE VIX SHOWS THAT OPTION TRADERS ARE TURNING MORE CAUTIOUS ON STOCKS -- EUROPE IS PULLING EAFE ISHARES LOWER

The market did close below 11,000 at our first support bottom.
We remain long on the market, and remain with the call