Top Probably in at 876 S&P Futures; Jan. 29, 2009

A top is probably in as today's reversal after our brilliant government came out with a double whammy yesterday with the Fed announcement and Congress passing a stimulus plan that's finally out of the way. Breadth was solidly negative today on the NYSE so after all the hype, nothing but sellers essentially entered the market today. The decline so far appears impulsive, but still has some sub-divisions to go before it can be confirmed. Plus, it appears yesterday's high is around the 50% fibo level from the previous decline (see 15min S&P futures chart).

Bottom line: most likely a top is in for the stock market, so the S&P will break its 2008 low of 740 before it even thinks about breaking the 876 futures' high from yesterday.