That could actually spark a final rally wave up: If they announce some kind of limited short ban in certain stocks/sectors. No one is bigger than the market. No one.
[Update 8:45 PM: advance/decline cumulative forms an awesome EW pattern. I have to think P2 has been met at least on the SPX.]
After looking over some more charts and stuff, one has to come to the conclusion that a major inflection point has been reached. Although we could accept a new high in some subindex (maybe RUT) or perhaps even the DJIA, it doesn't look good for any new high on the SPX , financials or for that matter real estate.
The volume unleashed in certain bearish ETF's is too much to ignore. High volume often marks turning points.
Here is FAZ, SPXU, and SRS.
Not all ETF's show this kind of monster volume for instance QID shows a more muted normal level