Make or Break for this Bull

I always root for the badly out gunned bull in the Spanish bull fights. I take great pleasure in seeing the exhausted and battered Toro deliver a horn to the ass of some Fop matador prancing for the crowds, and tormenting this majestic animal. Having done exceedingly well in the bear market that engulfs us I am hoping to not get similar treatment. "You mess with the bull you get the horns"

Today should be a critical day for the markets recent meteoric rise from the lows of 666 on the S&P 500. The major averages are flirting just above the key 50 day moving averages, which could act as critical support and a place for the bulls to make a stand. This mornings release of Durable Goods Orders at 830 am EST and sales of existing homes at 10 am EST, should provide the cues for today's action. More importantly I feel that the market is now going to be forced to stand on its own. The federal govt, the Treasury and Federal Reserve have taken massive, heroic efforts to revitalize the markets, but all the cards now seem to be on the table. Should we falter here I fear it is time for the doctor to enter the room and inform the patient it is time to get his affairs in order. We are heading into earnings season which should be the ultimate arbiter of corporate health. Gauzy assurances from CEO's of dubious credibility will be put to the test with actual earnings numbers and official guidance. Should earnings season prove ugly, and March employment numbers due out on April 3rd continue to disappoint, we could be in for another horrific plunge to retest the lows or worse. As mentioned earlier I feel an orderly pull back to 710 or so on the S&P, would be healthy and a great area to deploy some capital on the long side. Yesterdays orderly descent fits into that scenario. Lets try and trade the tape we have, not the one we want!