Plunger Alert: S&P 500

To understand just how important it is 800 level is on the S&P 500 take a look at the historical chart.

The picture says it all. You can see a massive double top at about 1600 with the base at almost exactly 800. If the S&P breaks 800 with any force it will go straight to hell and all 500 stocks that comprise it will thud hard onto the pink sheets.

Now see what the market did yesterday after they heard genius is billionaire bailout plan.

There's a new sheriff in town but the law hasn't changed a bit, they can not allow the S&P 500 to collapse here but that is the only thing the S&P 500 is really capable of doing, smells a lot like the plungers will have an active day.

I don't believe the plungers are as powerful a force as they worried even six months ago, but with the markets up, and if they are billionaires precious bonuses on the line I think today they'll have their day, but lose it again tomorrow. Long and short of it, the S&P 500 is below its 200 day moving average, so don't go long, unless you realize it's just a short-term pop, otherwise short any stock into this  rally.