11/24 SPX Continue or kiss-bye-bye?

Friday's rally was because of Obama and OE, now Monday, Obama scheduled to have press conference at 12 noon EST.

There are several layers of resistance, 800 is the down trend line, 820-825 area is previous strong support since 10/10, now becomes heavy resistance above. Next is the 840-850 area, the 0.38 Fib line from 1007 high and 741 low.

Should Obama rally continue?

If true we should see heavy vol on buy side that push SPX above 820 on Monday and hold above 820 to close. On Tuesday, we should see a pull back on GDP number, but the pull back should hold 800, then later Tuesday or Wednesday, it should hop above 850.

If false, SPX could retest 800, maybe 820 (or even touch 840-850 area) with low volume, then followed by heavy sell-off that leads SPX close below 780. In this case 820-850 area should be a good short. (see blue lines in above chart)

Flash bail out News on C:

"In addition to the capital, Citigroup will have an extremely unusual arrangement in which the government agrees to backstop a roughly $300 billion pool of its assets, containing mortgage-backed securities among other things. Citigroup must absorb the first $37 billion to $40 billion in losses from these assets. If losses extend beyond that level, Treasury will absorb the next $5 billion in losses, followed by the FDIC taking on the next $10 billion in losses. Any losses on these assets beyond that level would be taken by the Fed."

Obama's Monday 12:pm speech

Mkt might be able move towards resistance line 11/24.

But Tuesday's Q3.08 Preliminary GDP could be a problem for longs to continue. If mkt is unable to move any further than 820, the pull back will happen after GDP.