It's either going to be a great day, or horrible day tomorrow. Goldman Sachs (GS) will post earnings before the bell. What's good or bad for Goldman will be good or bad for the stock market. Today the S&P rebounded back up to about that 38% Fibonacci retracement/resistance level again basis the S&P 500. Good GS numbers and reaction tomorrow would certainly vault the market on a journey toward 50%. Bad numbers/outlook would certainly take the market below today's lows which were briefly below the 1400 area.
Why do I say it's either going to be a great day or a bad day? In looking at the GS March options straddle, a move of nearly $9 is being priced in post earnings tomorrow in either direction. Wow.