Markets are trading at pivotal junctures.

Markets are trading at pivotal S/R which could be a start of a strong move to downside which is technically sound after the recent reactive bear market rally of 20% +/- from SPX 666.79 on 3/6/2009 to SPX 823.37 on 3/23/2009. The bearish case is a long squeeze which is the opposite reaction to the recent vicious rally.

Resistances:
SPX 830 +/-
DOW 7780 +/-
Nasdaq 1555 +/-
Q 31 +/-

The volatility setup could be a contrarian setup which is signaling a strong down-move, but again markets are trading at all important pivotal junctures.

$VIX and $CPC as of 3/23/2009:

VIX closed at 42.01 while $CPC is at 0.70 which is the 2 year low (CPCI is lower than CPCE which P/C ratio is saying many are buying Index ETFs)