R.C. Market Report 2.23

• Today: S&P closed below the important 750 level. Market sold off as AIG added to the current financial mess and government's help won't come until Wednesday.

• Tomorrow: It feels like there's no reason to rally but I got long the market near the end of day on updown.com. The volume was less on today's decline than last friday's. Gold didn't move higher in response to a fall in the market. And technically, it's oversold. We closed below 750 today but I don't think this level will go away without a fight. If we are to hold the sideway trend range, dating back to last october, we are going to have a rally. Last time we were at this level, market responded with a 5 day rally. We can have a stronger rally this time if couple of things happen. One, market rallies tomorrow in anticipation of gov action on wed and/or on leaked information. Then on wed, Geithner has to deliver this time. If he succeeds in providing any form of clarity, this market will scream higher. If he fails, I expect to see 6's on Dow and S&P in matter of days. So the possibility of a giant move lies for both directions. But since I believe that this monthly support of 750 is of significance, I'm simply betting on the upside, no less with fake money.