News that the Obama administration is considering a "bad bank" program caught many market players by surprise and we saw a sharp gap of 2% higher to start the day. According to Jason at Sentiment Trader, we never have seen a 2% gap on a FED day, ever.The market is trying to welcome the government's actions, however, all during this bear market, the celebrated actions have been short lived. We'll see if bulls can follow up today's action. A few technical's that are bothersome is the Put/Call ratio. It is not an indicator I look at often, but there are some levels that will peak my attention. One is when the index put/call ratio dips below 1. Recently it has done a good job forecasting within a day or two a big down day. We are now 3 days at or below the 1.0 level. Upside volume was 88% today and has sent the MA back into overbought levels. (See chart B) A sign of a strong market is ability to rally in face of overbought conditions or at least hold its gains. We have regained the 850 level, it will be nice if we can sustain above it.