My thesis still has not changed from previous market thought post 'infection point, maybe'. There are far too many indications that suggest the market needs to consolidate. Hence I did not close out any of my market protection. The SP500 continues to reflect this by dancing with its resistance.
However I strongly believe the market players are slowly realizing the fact that a double dip is not going to take place. With this very important fact descending upon them, they know the market multiple is too low. The multiple should be around 14-15. If we assume the estimate of $87 per share for the SP500 is accurate, then a 14-15 multiple puts the SP500 between 1218-to-1305. (For the record, based on the macro-economic environment I am seeing, after this consensus estimate was issued, I think it is too low.)
The market will rally to the weekly 200/320 SMA.
The one indication I really like, that suggests such a market realization by the big boys is the LQD (corporate bond fund, which I think is a mood for the bond market in general). It looks toppy, and wants to roll over. After it rolls over, that cash will be put to work within inexpensive multi-nationals with great balance sheets, steady earnings. (ie IBM, MSFT, AAPL, GOOG, GS, F... the list goes on-and-on.)