THE WORRY

Looks like a BSC deal is "nearly" done and apparently wall street wants it done before foreign markets open tonight. The price probably won't make many folks on the street happy as $20 a share is what is being discussed by JPM. Apparently, JPM wants some assurances that they won't lose a lot of money on the deal. Wonder if we will here from all the Hillary bashers about socialism as it relates to investment banking. I bet an investment bank bail out by the government will be ok for the Kudlow right but health insurance for sick children - forget about it.

Anyhow, lots of folks including this fish quite concerned about this juncture in the markets. Obviously the BSC deal is still a wild card but other things also out there to either make these market rip higher or cascade lower;

What can go right:

Broker numbers come in OK and the news is looked at as "not as bad a predicted."

FED cuts rates .75/1 points on Tuesday since inflation is gone in light of Friday's CPI;

FIB 61.8 retracement and prior support at 1,270 holds;

Oil and Gold pullback;

Markets at over bought levels with VIX over the magic 30 level at 31.16 and 14% above the 10 SMA.

RSI (2) levels on SPX monthly chart (2) and on the weekly chart (8)- pretty pretty oversold. And a positive MACD divergence on the weekly chart above.

MSFT/YHOO deal gets done.

Another unexpected major takeover/merger deal is announced.

And what could go wrong;

BSC is still independent Monday morning;

Another institution is deemed to have a "problem."

Markets cascade lower under the SPX 1,270 support level.

Margin selling accelerates.

Brokerage earnings are "worse than expected" as are management comment.