Big intraday reversal, today was supposed to be our firework crash down. It didn't happen. Market participants are now trying to hold this house of cards together with rumors: master plan in Germany, ECB talks on Wed, Bernanke on thurs. today's intraday reversal on the day of a crash tells me we will be seeing one final pump and dump (possibly).
Scenario 1: we rally to 1290-1340 on news, that will ultimately disappoint. This sets us up for an absolutely enormous meltdown (more than scenario 2) so it would be good to buy shorts all the way up to these levels.
Scenario 2: this is the resemblance of August 3rd, 2011, where the day looked like a bottom but then was follow by 60 and 80 handles down the following next day. Is would take us to, in his scenario, 1200 before a relief, and then resume the crash (ultimate target 900-1050).