SP500 Update: Three Steps Down ~ Leave Room for Two Steps Up?

Keep your eye on Libya. From Bloomberg today: Tanker Loading in Libya Signals Crude Supply Still Moving By Alaric Nightingale - Feb 23, 2011 11:12 AM CT The SP500 bottomed at 1215pm CT, an hour after the story posted. Operations at Libyan oil ports are said to be suspended, but a tanker did load and sail today, contrary to the claim of operations being suspended. For the moment, that took the heat off the market and sparked a 14 point short covering rally to 1311, then a 7 point (50%) retrace to 1304. If another +14 point step up is added from 1304 while oil ops continue, the SP500 can climb back to 1318-1321. Note that the three -23 point selloffs led to a total decline of -46 points. If you recover half of -46, and add +23 to 1297, you get 1320. Short-covering will continue while oil ops in Libya continue. Bearish intraday momentum is sloping into 1325-1326 overnight.