BSC, MS, GS, LEH (Financials) are reporting next week, Monday, Tuesday, and Wednesday. With a short week and the VIX already above 30--possible reversal signal--do you expect DIA to crash? It looks really bad on the chart, but maybe the FED will do something Tuesday to change things???
Doubt it. Everybody...and I mean EVERYBODY, is either flat out short this market or hedged (like me). That should provide a cushion since Put options, if exercised, means stock has to be bought and delivered at a higher price. If we get any kind of good news, like Bear Stearns being bought at a higher price or say, refinancings in California explode due to the higher loan limits, then we could get a powerful reversal, just like last tuesday.