Market Direction Call S&P 500 March 15 2011


	MARKET DIRECTION CALL S&P 500 March 15 2011 - Market Remains Resilient
Despite the steep 10% selloff in Japan, the S&P500 was surprisingly strong. The chart tells the whole store. The selling at the end of the day is to be expected as nervous traders book some profits at the close. However overall the market does not yet show any signs of actually breaking down. The recovery from the down open of 1261.12 to touch 1288.39 shortly before the close, was interesting as it showed that many investors are holding specific positions and unwilling to sell them, yet. The turmoil in the Middle East, in oil and now in Japan is actually being handled well by the overall market. I did not add to my SPY puts late in the day. I am willing to wait or to be wrong as the market right now, remains fairly resilient. The events in Japan alone are so overwhelming and devastating that I would have thought the market would have reacted much worse. While I am not expecting an uptrend to resume, I do believe there may be better opportunities in the next few days.

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