Right Shoulder Shrug?

Remember that post/notion from a few weeks ago stating that if the European headlines and the oil spill news gets old enough then the markets become relatively unaffected by them - experts will say that "the news has been priced in". Personally, I just think traders get bored and they look for the next sexy news piece to dictate their trading momentum. Anyways, the news has become stale and the economic reports continue their slight declines/minimally positive natures - consistent with the sluggish and below-growth recovery expected here and by many smarter economists. The one suprise has been that earnings season isn't shaping up to be quite the boom it was expected, again, see the secondary and delayed impact of the Euro issues in play here.

That being said, the market has had an amazing bounch from its 1050 floor back up to the near 1130 levels that would create nearly a full right shoulder. Now the story after that is that, logically speaking, the markets then decline past the 1050 floor and to the next support level of 975. Then again, these markets have been anything but logical. Volatility and technicals are running the day and now that the market has hopped above its 200 day moving average, that level may provide support and prevent the downward declines. But there I go again, using logic to explain what may happen -- good luck with that.