Not looking good for the bears as the break appears like it will be higher. Not set in stone yet but the bulls are ahead with the Intel earnings release. Not really surprised with the Intel numbers. I actually sold covered puts on a different chip maker I am short in anticipation of good Intel numbers. You have retail sales number tomorrow which will probably be good and JP Morgan earnings numbers tomorrow morning which will also probably be good. The JP Morgan numbers will be interesting because expectations are really high. You could have a beat and the stock still sells off. The only hope in the short term for the bears is you open up around 1077 to 1080 and like Alcoa, Intel sells off all day and JP Morgan sells off all day. I don't really know what the probability is. It seems like it is higher than what it feels like right now looking at futures.
I have been saying we are at a breaking point and tomorrow the market may finally show its hand. In a strange way, I feel like earnings sort of comes down to three or four companies. JP Morgan, General Electric, Citigroup, and maybe Goldman. You could maybe throw Apple in there as well. How those four (five) stocks react around the earnings release I think will determine whether we will be marching higher to the 1100+ area.
Looking good for the bulls. Time will tell.