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Market did not get what it want and responsed a sell off by end of session. But over all, market is orderly retrace, VIX get higher again, but still in order. S&P once again below 1200 which is critical defence line to keep. It is possible that S&P re-test 1150 tomorrow if Congress still can't conclude on 700B rescue plan. I think by end of this week, Congress must provide something to calm the market which gradually lost patient. This is critical time again, it will be a make or breake deal. VIX could shoot up again to form a double top pattern.
Congress known there will be severe conseqence by not passing the 700B rescue plan. That will be desperation. The hopeless to the Congress, to US financial system, to US Corperation will build up humongous power to destroy the market. That will be real MDW -- "Massive Destruction of Wealth." No one could afford it. The time is ticking.
Now it is just like Chinese word " 危機”， Crisis and hope are hand in hand. " 危險和機會共存” Once the bill pass, we will see a huge rally hit the market. Market once again become extremely over sold. Any good news could launch a huge counter-wave.
We may play waiting game tomorrow. But the deadline is Friday. No more time. Let's wait and see.
Happy Trading!
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