Watch that ~842 level. It's important.

For being such an active and important stock, GOOG doesn't appear on this blog very often. I simply don't trade it that much. But I will point out how "obedient" it has been with respect to its retracement levels:

That's quite remarkable – an approximately 2/3rds loss in value in one year's time. To my way of thinking, GOOG seems poised to fight its way back to about $350 before resuming its plunge and cutting beneath 2008's lows.

I'm heading upstairs with Mrs. Bear to watch the new episode of "24"; as of this writing, the ES is up a hearty 15 points, and I reversed my short position to a long one. I've spent all weekend ruminating about the markets, and frankly I think a robust rally would be fantastic for all concerns, bulls and bears alike.

I still think there's going to be one more low made this month before we honestly and truly head higher in a big way, but in the interim, I think this mini-rally makes sense. See you in the morning.

I have drawn Fibonacci retracements on the $SPX from the peak of the post-Obama election euphoria down to the depths of last week's despair. The retracement levels are pretty interesting; I've tinted some key ones here.

 Friday's late-day rise was very sharp, but if can't manage our way past the retracement at $803.91, that's simply pathetic. Pushing up to $842.82 level would be pretty exciting; I would use that opportunity to exit my bullish positions (SSO, QLD, DBA, and a variety of small longs) and go short the ES. The highest I can fathom the S&P going in the relatively short-term is the $905.71 level. If we cut above that, it's pretty evident that the bottom is in place and we're in store for a much more substantial rally than we've seen in many months.

Since each post is getting buried with comments (even with live chat back in place), I'll do a Sunday morning comment cleaner with this gem I just saw.